[Federal Register Volume 72, Number 22 (Friday, February 2, 2007)]
[Proposed Rules]
[Pages 5108-5140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1634]



[[Page 5107]]

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Part II





Nuclear Regulatory Commission





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10 CFR Parts 170 and 171



Revision of Fee Schedules; Fee Recovery for FY 2007; Proposed Rule

  Federal Register / Vol. 72, No. 22 / Friday, February 2, 2007 / 
Proposed Rules  

[[Page 5108]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AI00


Revision of Fee Schedules; Fee Recovery for FY 2007

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
the licensing, inspection, and annual fees charged to its applicants 
and licensees. The proposed amendments are necessary to implement the 
Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended, which 
requires that the NRC recover approximately 90 percent of its budget 
authority in fiscal year (FY) 2007, less the amounts appropriated from 
the Nuclear Waste Fund (NWF), and for Waste Incidental to Reprocessing 
(WIR) and generic homeland security activities. Based on the FY 2007 
Energy and Water Development Appropriations Bill (H.R. 5427), passed by 
the U.S. House of Representatives, the NRC's required fee recovery 
amount for the FY 2007 budget is approximately $663.7 million. After 
accounting for carryover and billing adjustments, the total amount to 
be recovered through fees is approximately $664.9 million. A final 
appropriation has not been enacted. Thus, the total amount that must be 
recovered through fees may be different once a final appropriation is 
enacted.

DATES: The comment period expires March 5, 2007. Comments received 
after this date will be considered if it is practical to do so, but the 
NRC is able to ensure only that comments received on or before this 
date will be considered. Because OBRA-90 requires that the NRC collect 
the FY 2007 fees by September 30, 2007, requests for extensions of the 
comment period will not be granted.

ADDRESSES: You may submit comments by any one of the following methods. 
Please include number RIN 3150-AI00 in the subject line of your 
comments. Comments on rulemakings submitted in writing or in electronic 
form will be made available to the public in their entirety on the NRC 
rulemaking Web site. Personal information will not be removed from your 
comments.
    Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff.
    E-mail comments to: [email protected]. If you do not receive a reply e-
mail confirming that we have received your comments, contact us 
directly at (301) 415-1966. You may also submit comments via the NRC's 
rulemaking Web site at http://ruleforum.llnl.gov. Address questions 
about our Web site to Ms. Carol Gallagher, 301-415-5905; e-mail 
[email protected]. Comments can also be submitted via the Federal eRulemaking 
Portal at http://www.regulations.gov.
    Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 
20852, between 7:30 a.m. and 4:15 p.m. Federal workdays. (Telephone 
301-415-1966).
    Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at 
(301) 415-1101.
    Publicly available documents related to this rulemaking may be 
viewed electronically on the public computers located at the NRC's 
Public Document Room (PDR), Room O1 F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland. The PDR reproduction contractor 
will copy documents for a fee. Selected documents, including comments, 
may be viewed and downloaded electronically via the NRC rulemaking Web 
site at http://ruleforum.llnl.gov.
    To obtain additional information on the NRC's FY 2007 budget 
request, commenters and others may review NUREG-1100, Volume 22, 
``Performance Budget: Fiscal Year 2007'' (February 2006), which 
describes the NRC's budget for FY 2007, including the activities to be 
performed in each program. This document is available on the NRC's 
public Web site at http://www.nrc.gov/reading-rm.html. Note, however, 
that NUREG-1100, Volume 22, is based on the NRC's FY 2007 budget 
request to Congress, and that the fees in this rulemaking are based on 
the version of the NRC's FY 2007 budget approved by the U.S. House of 
Representatives in H.R. 5427, as discussed in more detail later in this 
document. The NRC budget in H.R. 5427 includes an additional 
approximately $40 million, above the NRC's budget request, for 
activities such as new reactor licensing and related support. The 
allocation of the H.R. 5427 budget to planned activities within each 
program, and to each fee class and surcharge category, is included in 
the publicly available work papers supporting this rulemaking.
    Publicly available documents created or received at the NRC after 
November 1, 1999, are available electronically at the NRC's Electronic 
Reading Room at http://www.nrc.gov/reading-rm/adams.html. From this 
site, the public can gain entry into the NRC's Agencywide Documents 
Access and Management System (ADAMS), which provides text and image 
files of NRC's public documents. If you do not have access to ADAMS or 
if there are problems in accessing the documents located in ADAMS, 
contact the NRC PDR Reference staff at 1-800-397-4209; 301-415-4737 or 
by e-mail at [email protected].

FOR FURTHER INFORMATION CONTACT: Renu Suri, telephone 301-415-0161; 
Office of the Chief Financial Officer, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001.

SUPPLEMENTARY INFORMATION: 
I. Background
II. Proposed Action
III. Plain Language
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis

I. Background

    The NRC is required each year, under OBRA-90, as amended, to 
recover approximately 90 percent of its budget authority (less amounts 
appropriated from the NWF and for other activities specifically removed 
from the fee base), through fees to NRC licensees and applicants. The 
NRC receives appropriations each year for 10 percent of its budget 
authority (less amounts appropriated from the NWF and for other 
activities specifically removed from the fee base), to pay for the 
costs of agency activities that do provide a direct benefit to NRC 
licensees, such as international assistance and Agreement State 
activities under section 274 of the Atomic Energy Act of 1954, as 
amended.
    The NRC assesses two types of fees to meet the requirements of 
OBRA-90, as amended. First, license and inspection fees, established in 
10 CFR part 170 under the authority of the Independent Offices 
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's 
costs of providing special benefits to identifiable applicants and 
licensees. Examples of the services provided by the NRC for which these 
fees are assessed are the review of applications for new licenses and 
the review of renewal applications, the review of amendment requests, 
and inspections. Second, annual fees established in 10 CFR part 171 
under the authority of OBRA-90, as amended, recover generic and other 
regulatory costs not otherwise recovered through 10 CFR part 170 fees.

[[Page 5109]]

    The NRC is currently operating under a continuing resolution (CR) 
for FY 2007 (Pub. L. 109-383) that is effective through February 15, 
2007. This means that the FY 2007 funds currently available are similar 
to the NRC's funding in FY 2006. Although the NRC has not received a 
new appropriation for FY 2007, the NRC must proceed with this 
rulemaking to collect the required fee amounts by September 30, 2007. 
Therefore, the NRC is establishing fees in this rulemaking based on the 
FY 2007 Energy and Water Development Appropriations Bill (H.R. 5427), 
passed by the U.S. House of Representatives. The NRC is basing its FY 
2007 fees on this version of its FY 2007 appropriations because this 
amount has been approved by the full House of Representatives. The 
Senate version of this bill is similar: The total funding is the same, 
but the allocation of the budget to certain activities is slightly 
different.
    If Congress enacts a different version of the NRC budget than that 
included in H.R. 5427, the fees in the NRC's FY 2007 final fee rule 
will be adjusted to reflect the enacted budget. Therefore, fees in the 
FY 2007 final fee rule may differ from the fees in this proposed rule. 
The NRC will adjust the FY 2007 final fees based on the enacted version 
of the budget without seeking further public comment.
    For example, if Congress enacts legislation that requires the NRC 
to operate under a CR for the full FY 2007 and appropriates 
significantly less to the NRC, the fees in the FY 2007 final fee rule 
will be modified from the fees in this FY 2007 proposed fee rule, to 
reflect the reductions in budgeted resources. The NRC's total required 
fee recovery could be reduced by approximately $80 million under a 
full-year CR, as compared to H.R. 5427, although the NRC's exact fee 
recovery amount would depend on the specific provisions in such 
legislation. A given licensee's part 171 annual fees under a full-year 
CR would be either similar to, or less than, the fees included in this 
proposed fee rule. (Fees in the FY 2007 final fee rule may also change 
from this proposed fee rule for other reasons, such as changes in the 
amount expected to be received from part 170 fees in FY 2007 compared 
to FY 2006.) Under a full-year CR, annual fees for some license fee 
classes may be affected more than other license fee classes, based on 
which NRC activities are subject to budget reductions. It is possible 
that some annual fees may increase from this proposed rule under a 
full-year CR, because the NRC's ten percent fee relief, which is used 
to reduce all annual fees in this proposed rule (discussed more in 
Section II.B.2, ``Application of `Fee Relief'/Surcharge Changes''), 
would be reduced. This may occur if a particular license fee class is 
not subject to budget reductions under a CR, and also receives a 
smaller annual fee reduction than that included in this proposed fee 
rule from the NRC's fee relief. The change in appropriations under a 
full-year CR would be unlikely to have a significant impact on the part 
170 hourly rates included in this proposed rule.
    Based on H.R. 5427, the NRC's required fee recovery amount for the 
FY 2007 budget is approximately $663.7 million, which is increased by 
approximately $1.2 million to account for billing adjustments (i.e., 
expected unpaid invoices), resulting in a total of approximately $664.9 
million that must be recovered through fees in FY 2007.
    In accordance with Section 637 of the Energy Policy Act of 2005 
(Pub. L. 109-58), the budgeted resources associated with generic 
homeland security activities are excluded from the NRC's fees each 
year, beginning with this FY 2007 fee rule. This new legislative 
provision was discussed in the NRC's FY 2006 proposed and final fee 
rules (71 FR 7349, February 10, 2006; 71 FR 30721, May 30, 2006), and 
results in the removal of approximately $35.3 million from the fee base 
in FY 2007. These funds cover generic activities--those activities that 
support an entire license fee class or classes of licensees--such as 
rulemakings and guidance development. Under the NRC's authority under 
the IOAA, the NRC will continue to bill under part 170 for all 
licensee-specific homeland security-related services provided, 
including security inspections (which include force-on-force exercises) 
and security plan reviews.
    The amount of the NRC's required fee collections is set by law, and 
is therefore outside the scope of this rulemaking. In FY 2007, the 
NRC's total fee recovery increased by $39.9 million from FY 2006, 
mostly in response to increased workload for new reactor licensing 
activities. The FY 2007 budget was allocated to the fee classes that 
the budgeted activities support. As such, the proposed annual fees for 
reactor licensees increased. The proposed annual fees for most other 
licensees decreased due to factors such as the removal of generic 
homeland security resources from the fee base, and other reductions in 
budgeted resources allocated to the fee classes. Another factor 
affecting the amount of annual fees for each fee class is the estimated 
collection under part 170, discussed in the Proposed Action section of 
this document.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 90 percent of its FY 2007 budget 
authority (less the appropriations received from the NWF, and for WIR 
and generic homeland security activities). The NRC's total budget 
authority for FY 2007 (under H.R. 5427) is $816.6 million. Of that 
total, approximately $41 million is appropriated from the NWF, $2.9 
million is budgeted for WIR activities, and $35.3 million is budgeted 
for generic homeland security. Based on the 90 percent fee recovery 
requirement, the NRC must recover approximately $663.7 million in FY 
2007 through part 170 licensing and inspection fees and part 171 annual 
fees. After accounting for carryover and billing adjustments, the total 
amount to be recovered through fees is approximately $664.9 million. 
The NRC's FY 2007 fee recovery is $39.9 million more than the amount 
estimated for recovery in FY 2006, an increase of approximately six 
percent.
    The FY 2007 statutorily required fee recovery amount of $663.7 
million is increased by $1.7 million to account for billing adjustments 
(i.e., for FY 2007 invoices that the NRC estimates will not be paid 
during the fiscal year, less payments received in FY 2007 for prior 
year invoices). There is approximately $0.5 million FY 2006 carryover 
to apply to FY 2007 fee collections. This leaves approximately $664.9 
million to be recovered in FY 2007 through part 170 licensing and 
inspection fees and part 171 annual fees.
    The NRC estimates that approximately $193.4 million will be 
recovered in FY 2007 from part 170 fees. This represents an increase of 
approximately five percent as compared to the part 170 collections for 
FY 2006 of $185 million. The NRC derived the FY 2007 estimate of part 
170 fee collections based on the previous four quarters of billing data 
for each license fee class, with adjustments to account for changes in 
the NRC's FY 2007 budget, as appropriate. The remaining $471.5 million 
will be recovered through the part 171 annual fees in FY 2007, compared 
to the required part 171 collections of $441.7 million for FY 2006, an 
increase of approximately seven percent.
    Table I summarizes the budget and fee recovery amounts for FY 2007 
(individual values may not sum to totals due to rounding).

[[Page 5110]]



          Table I.--Budget and Fee Recovery Amounts for FY 2007
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority..................................          $816.6
    Less NWF, WIR, and generic homeland security........           -79.2
                                                         ---------------
        Balance.........................................          $737.4
    Fee Recovery Rate for FY 2007.......................         x 90.0%
                                                         ---------------
Total Amount to be Recovered for FY 2007................          $663.7
    Less Carryover from FY 2006.........................            -0.5
                                                         ---------------
    Plus Part 171 Billing Adjustments
        Unpaid FY 2007 Invoices (estimated).............             5.4
        Less Payments Received in FY 2007 for Prior Year            -3.7
         Invoices (estimated)...........................
                                                         ---------------
        Subtotal........................................             1.7
                                                         ===============
Amount to be Recovered Through Parts 170 and 171 Fees...          $664.9
    Less Estimated Part 170 Fees........................          -193.4
                                                         ===============
Part 171 Fee Collections Required.......................          $471.5
------------------------------------------------------------------------

    The FY 2007 final fee rule will be a ``major rule'' as defined by 
the Congressional Review Act of 1996. Therefore, the NRC's fee 
schedules for FY 2007 will become effective 60 days after publication 
of the final rule in the Federal Register. The NRC will send an invoice 
for the amount of the annual fee to reactors and major fuel cycle 
facilities upon publication of the FY 2007 final rule. For these 
licensees, payment will be due on the effective date of the FY 2007 
rule. Those materials licensees whose license anniversary date during 
FY 2007 falls before the effective date of the final FY 2007 rule will 
be billed for the annual fee during the anniversary month of the 
license at the FY 2006 annual fee rate. Those materials licensees whose 
license anniversary date falls on or after the effective date of the 
final FY 2007 rule will be billed for the annual fee at the FY 2007 
annual fee rate during the anniversary month of the license, and 
payment will be due on the date of the invoice.
    The NRC will send an invoice for the amount of the annual fee to 
reactors, part 72 licensees, major fuel cycle facilities, and other 
licensees with annual fees of $100,000 or more, upon publication of the 
FY 2007 final rule. For these licensees, payment is due on the 
effective date of the FY 2007 final rule. Because these licensees are 
billed quarterly, the payment due is the amount of the total FY 2007 
annual fee, less payments made in the first three quarters of the 
fiscal year. Materials licensees with annual fees of less than $100,000 
are billed annually. Those materials licensees whose license 
anniversary date during FY 2007 falls before the effective date of the 
FY 2007 final rule will be billed for the annual fee during the 
anniversary month of the license at the FY 2006 annual fee rate. Those 
materials licensees whose license anniversary date falls on or after 
the effective date of the FY 2007 final rule will be billed for the 
annual fee at the FY 2007 annual fee rate during the anniversary month 
of the license, and payment will be due on the date of the invoice.
    As a matter of courtesy, the NRC plans to continue mailing the 
proposed fee rule to all licensees, although, as a cost saving measure, 
in accordance with its FY 1998 announcement, the NRC has discontinued 
mailing the final fee rule to all licensees. Accordingly, the NRC does 
not plan to routinely mail the FY 2007 final fee rule or future final 
fee rules to licensees.
    The NRC will send the final rule to any licensee or other person 
upon specific request. To request a copy, contact the License Fee Team, 
Division of Financial Management, Office of the Chief Financial 
Officer, at 301-415-7554, or e-mail [email protected]. The NRC plans to 
publish the final fee rule no later than June 2007. In addition to 
publication in the Federal Register, the final rule will be available 
on the Internet at http://ruleforum.llnl.gov for at least 90 days after 
the effective date of the final rule.
    The NRC is proposing to amend 10 CFR parts 170 and 171 as discussed 
in Sections II.A and II.B of this document.

A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials, 
Import and Export Licenses, and Other Regulatory Services Under the 
Atomic Energy Act of 1954, as Amended

    The NRC is proposing to establish one hourly rate to recover the 
full cost of activities under part 170, and to use this rate to 
calculate ``flat'' application fees. Additionally, this rule proposes 
to revise the license application fees to (a) reflect the FY 2007 
hourly rate and to comply with the requirement under the Chief 
Financial Officers (CFO) Act of 1990 (Pub. L. 101-578, November 15, 
1990, 104 Stat. 2838) that fees be reviewed biennially and revised as 
necessary to reflect the cost to the agency, (b) establish new flat 
fees for requests for exemptions from import/export licensing 
requirements, and (c) change facilities flat fees to full cost fees. It 
also proposes to establish new fee categories under Sec.  170.31 and 
make minor administrative changes for purposes of clarification and 
consistency.
    The NRC is proposing the following changes:
1. Hourly Rate
    The NRC is proposing to establish in Sec.  170.20 one professional 
hourly rate for NRC staff time. This would be a change from the current 
policy of using two hourly rates, one for the Nuclear Reactor Safety 
(Reactor) Program, and one for the Nuclear Materials and Waste Safety 
(Materials) Program.
    From FY 1988 through 1994, the NRC used one agencywide professional 
hourly rate. In the FY 1995 fee rule (60 FR 32218; June 20, 1995), the 
NRC replaced the single rate with two professional hourly rates based 
on `cost center concepts' used for budgeting purposes, to more closely 
align budgeted costs with specific fee classes. The average difference 
in hourly costs between the Reactor and Materials Programs has been 
small for a number of years. From FY 1998 through FY 2006, the average 
difference in these rates was approximately two percent. The NRC does 
not have reason to

[[Page 5111]]

believe that these two rates will be notably different from each other 
in the future. Additionally, the NRC incurs administrative burden in 
calculating and billing two different hourly rates. Therefore, the NRC 
is proposing to return to the use of one hourly rate.
    The NRC's hourly rate is used in assessing full cost fees for 
specific services provided, as well as flat fees for certain 
application reviews. The FY 2007 proposed hourly rate is $256. This 
rate would be applicable to all activities for which fees are assessed 
under Sec. Sec.  170.21 and 170.31. In the FY 2006 final fee rule, the 
Reactor and Materials Program rates were $217 and $214, respectively.
    The FY 2007 proposed hourly rate is higher than the FY 2006 
Reactors and Materials Program rates mainly because of a downward 
revision to the NRC's estimate of direct hours worked per full-time 
equivalent employee (FTE) per year, which is used in the denominator of 
the hourly rate calculation (described in further detail later in this 
document). It is also higher due to Government-wide pay raises.
    The NRC's single hourly rate would be derived by dividing the sum 
of budgeted resources for (1) mission direct labor; (2) mission 
indirect (or program overhead) labor and non-labor activities 
(including mission direct travel); and (3) agency overhead labor and 
non-labor activities, by mission direct hours. The only budgeted 
resources excluded from the hourly rate are those for mission direct 
nonlabor (i.e., contract) activities. This method is consistent with 
the existing approach for calculating hourly rates for the Reactor and 
Materials Programs. The only difference is that the formula used to 
derive one average NRC hourly rate would be based on total NRC budgeted 
resources (excluding HLW, WIR, and generic homeland security), rather 
than using this same formula to calculate two rates based on resources 
allocated to the Reactor and Materials Programs.
    As noted previously, the FY 2007 proposed hourly rate is higher 
than the FY 2006 Reactors and Materials rates mainly due to a revision 
to the NRC's estimate of direct hours per FTE per year. The NRC last 
revised its estimate of direct hours worked annually per direct FTE in 
the FY 2005 final fee rule (70 FR 30525; May 26, 2005), when it began 
using an estimate of 1,446 hours. As explained in the FY 2005 final fee 
rule, this estimate is based on data from the NRC's time and labor 
system. The NRC has again reviewed data from its time and labor system 
to determine if this estimate requires updating for the FY 2007 fee 
rule. Based on this review of the most recent data available, the NRC 
determined that 1,287 is its best estimate of direct hours worked 
annually per FTE. This estimate excludes all non-mission direct hours, 
such as training, general administration, and leave. Because the NRC's 
hourly rates are calculated by dividing annual budgeted costs by the 
product of budgeted mission direct FTE and average annual direct hours 
per FTE, the lower the number of direct hours per FTE used in the 
calculation, the higher the hourly rates.
    The NRC is proposing to update its hourly rate calculation to 
reflect its latest estimate of direct hours per FTE to more accurately 
reflect the NRC's costs of providing part 170 services, which would 
allow the NRC to more fully recover the costs of these services through 
part 170 fees. The NRC believes that this is consistent with guidance 
provided in the Office of Management and Budget Circular A-25 on 
recovering the full cost of services provided to identifiable 
recipients. The resulting higher hourly rate would result in both 
increased full cost fees for licensing and inspection activities, and 
increased materials flat fees for license applications.
    Because costs not recovered under part 170 are recovered through 
part 171 annual fees, the increase in total part 170 fees (caused by 
the hourly rate increase) would result in a reduction to total annual 
fees of the same amount. As such, this hourly rate increase would shift 
some fee recovery from part 171 annual fees to part 170 fees for 
licensee-specific services. This change supports industry comments that 
consistently recommend that the NRC collect more of its budget through 
part 170 fees-for-services vs. part 171 annual fees. (Because the 
invoices reflecting these increased part 170 fees will not be paid by 
licensees until FY 2008--in light of the effective date of the FY 2007 
final rule and the timing of the NRC's regular billing cycle--the 
reduction in annual fees from this change would not occur until FY 
2008.)
    Because annual fees are adjusted to recover the remainder of the 
budgeted resources for a license fee class not recovered under part 
170, the total estimated fees (parts 170 plus 171) recovered from a 
license fee class would be the same regardless of the amount of the 
hourly rate. However, when implemented, higher hourly rates would 
result in some individual licensees paying less total fees than if this 
change were not enacted. This is true for those licensees for whom the 
NRC performs fewer hours of part 170 services than it does, on average, 
for a licensee in that class. Similarly, licensees for which the NRC 
performs more hours of part 170 services will pay more in total fees 
under the proposed higher hourly rate.
    Table II shows the results of the hourly rate calculation 
methodology. Due to rounding, adding the individual numbers in the 
table may result in a total that is slightly different than the one 
shown.

   Table II.--FY 2007 Budget Authority To Be Included in Hourly Rates
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Mission Direct Program Salaries & Benefits..............         $250.9M
Mission Indirect (Program Overhead) Salaries & Benefits,          105.6M
 and Mission Direct Travel..............................
Agency Management and Support...........................          247.2M
                                                         ---------------
    Subtotal............................................          603.7M
                                                         ===============
Less Offsetting Receipts................................           -0.1M
                                                         ---------------
    Total Budget Included in Hourly Rate................         $603.6M
Mission Direct FTEs.....................................           1,835
Professional Hourly Rate (Total Budget Included in                  $256
 Hourly Rate divided by Mission Direct FTE times 1,287
 hours).................................................
------------------------------------------------------------------------

    As shown in Table II, dividing the $603.6 million budgeted amount 
(rounded) included in the hourly rate by total mission direct hours 
(1,835 FTE times 1,287 hours) results in an hourly rate of $256. The 
hourly rate is rounded to the nearest whole dollar.

[[Page 5112]]

2. ``Flat'' Application Fee Changes
    a. Revised Flat Fees. The NRC is proposing to adjust the current 
flat application fees in Sec. Sec.  170.21 and 170.31 to reflect the 
revised hourly rate of $256 and the results of the biennial review of 
part 170 fees required by the CFO Act of 1990. These flat fees are 
calculated by multiplying the average professional staff hours needed 
to process the licensing actions by the professional hourly rate for FY 
2007.
    To comply with the requirements of the CFO Act, the NRC has 
evaluated historical professional staff hours used to process a new 
license application for those materials users fee categories subject to 
flat application fees. This review also included new license and 
amendment applications for import and export licenses.
    Evaluation of the historical data shows that fees based on the 
average number of professional staff hours required to complete 
licensing actions in the materials program should be increased in some 
fee categories and decreased in others to more accurately reflect 
current costs incurred in completing these licensing actions. The data 
for the average number of professional staff hours needed to complete 
new licensing actions was last updated for the FY 2005 final fee rule. 
Thus, the revised average professional staff hours in this proposed fee 
rule reflect the changes in the NRC licensing review program that have 
occurred since that time.
    As a result of the biennial review, the proposed application fees 
for materials users are based on the average professional staff hours 
that reflect an increase in average time for new license applications 
for four of the 34 Materials Program fee categories, a decrease in 
average time for six fee categories, and the same average time for the 
remaining 24 fee categories. [Note that for fee category 3.H., the NRC 
used seven years of data (rather than five) to determine the average 
application hours, to mitigate the significant fee `swings' resulting 
from large changes to this estimate in the past two biennial reviews, 
which the NRC believes are more a function of data anomalies than 
substantive changes.] The average time for new license applications and 
amendments for export and import licenses increased for seven fee 
categories in Sec. Sec.  170.21 and 170.31, and remained the same for 
the others. The proposed reciprocity fee reflects a slight decrease in 
the average time supporting these licenses. The registration fee for 
general licensees (fee category 3.Q. under Sec.  170.31) also 
decreased.
    The higher hourly rate of $256 is the main reason for the increases 
in the application fees. Application fees for some fee categories 
(K.3., K.4., and K.5. under Sec.  170.21; and 3.C., 3.N., 3.O., 15.C., 
15.D., 15.E., 15.R., and 17 under Sec.  170.31) also increase because 
of the results of the biennial review of fees, which showed an increase 
in average time to process these types of license applications. (As 
discussed in the FY 2006 final fee rule, the average hours to process a 
category 17 application are based on similar licenses of broad scope.)
    The amounts of the materials licensing flat fees are rounded so 
that the fees would be convenient to the user and the effects of 
rounding would be ``de minimis.'' Fees under $1,000 are rounded to the 
nearest $10, fees that are greater than $1,000 but less than $100,000 
are rounded to the nearest $100, and fees that are greater than 
$100,000 are rounded to the nearest $1,000.
    The licensing flat fees are applicable for fee categories K.1. 
through K.5. of Sec.  170.21, and fee categories 1.C., 1.D., 2.B., 
2.C., 3.A. through 3.S., 4.B. through 9.D., 10.B, 15.A. through 15.R., 
16, and 17 of Sec.  170.31. Applications filed on or after the 
effective date of the FY 2007 final fee rule would be subject to the 
revised fees in the final rule.
    b. Flat Fees for Import/Export License Exemption Requests. The NRC 
is proposing to charge part 170 flat fees for requests for exemptions 
from import/export licensing requirements. The same fees would apply to 
these requests for exemptions as apply to requests for import/export 
licenses, because the NRC incurs similar costs in reviewing a license 
application as it does in reviewing an exemption request. The NRC does 
not receive many requests for exemptions from import/export licensing 
requirements, but is proposing to assess part 170 fees for these 
requests to comply with IOAA direction to recover the full costs of the 
services it provides to identifiable recipients.
    c. Change Facilities Flat Fees to Full Cost Fees. The NRC is 
proposing to eliminate the flat application fees in Sec.  170.21 A 
(application for a nuclear power reactor construction permit), C 
(application for a test facility/research reactor/critical facility 
construction permit), D (application for a manufacturing license), and 
G (application for other production and utilization facility 
construction permit), and instead charge full cost part 170 fees for 
these activities. Footnote 1 to Sec.  170.21 would also be modified to 
eliminate reference to provisions relating to these flat fees. The NRC 
is proposing to make this change because it does not have recent data 
on average professional hours associated with these types of 
applications. Therefore, the NRC believes it is more appropriate to 
charge full cost fees for these types of activities.
    The NRC is also proposing to eliminate fee category F, ``Advanced 
Reactors'', in Sec.  170.21. This is because applications of this type 
are already covered under other fee categories (e.g., fee category A, 
``Nuclear Power Reactors''). The definition of ``Advanced Reactor'' 
under Sec.  170.3 would also be eliminated.
3. New Fee Categories
    The NRC is proposing to amend Sec.  170.31 to establish a new fee 
category (2.A.(5)) for uranium water treatment facilities. The NRC 
recently received a license application for this type of facility, 
which was unique to the NRC and therefore not covered by existing fee 
categories. Accordingly, the NRC charged this applicant full cost part 
170 fees for reviewing its application under the ``special project'' 
fee category in Sec.  170.31. Because the NRC is proposing to add a fee 
category under Sec.  171.16 to establish an annual fee for this type of 
facility (see Section II.B.4.b of this document), the NRC is also 
proposing to add the same new fee category under Sec.  170.31, to 
maintain consistency of the fee categories under parts 170 and 171. 
This new fee category under Sec.  170.31 would state that these 
facilities are subject to full cost licensing and inspection fees.
    The NRC is also proposing to update the fee amounts for some new 
and revised proposed fee categories that were included in another NRC 
rulemaking. The NRC published a proposed rule on July 28, 2006 (71 FR 
42952) titled, ``Requirements for Expanded Definition of Byproduct 
Material,'' which would amend its regulations to include jurisdiction 
over certain radium sources, accelerator-produced radioactive 
materials, and certain naturally occurring radioactive material, as 
required by the Energy Policy Act of 2005. This July 28, 2006, rule 
proposed to establish three new fee categories and revise one existing 
fee category. These new and revised fee categories would include 
activities not currently covered by the NRC's existing regulations, but 
which would be covered by the July 28, 2006, proposed rule. As 
explained in that proposed rule (71 FR 42967), which was published 
before the effective date of the FY 2006 final fee rule, the fee 
amounts quoted reflected FY 2005 rates and budgeted resources. The NRC 
revises its fees each

[[Page 5113]]

year in light of the current fiscal year budget and other factors. 
Accordingly, this document provides the proposed fee amounts for these 
new and revised fee categories based on the FY 2007 budget and proposed 
hourly rates.
    The new and revised fee categories included in the July 28, 2006, 
proposed rule on the expanded definition of byproduct material are not 
included in this FY 2007 proposed fee rule for public comment. This is 
because these new and revised fee categories will be finalized as part 
of the NRC's final rule on the expanded definition of byproduct 
material. The NRC expects to publish a final rule on the requirements 
for the expanded definition of byproduct material in mid-2007. The fee 
calculation methodology and FY 2007 fee amounts for these new and 
revised fee categories are proposed for public comment as part of this 
FY 2007 proposed fee rule.
    The NRC's proposed rule on the expanded definition of byproduct 
material would establish a new fee category 3.R.(1), for individuals 
possessing quantities greater than the number of items or limits in 10 
CFR 31.12(a)(3), (4), or (5), but less than or equal to 10 times these 
quantities. That rule proposed that the application and annual fees for 
3.R.(1) be the same as those for fee category 8 under Sec.  170.31, 
given the similarity in regulatory effort. The FY 2007 proposed 
application and annual fees for the new fee category 3.R.(1) continue 
to be based on the level of effort for fee category 8, and are $590 and 
$2,100, respectively.
    The proposed rule on the expanded definition of byproduct material 
would also establish a new fee category 3.R.(2), for individuals 
possessing quantities greater than 10 times the number of items or 
limits in 10 CFR 31.12(a)(3), (4), or (5). That rule proposed that the 
application and annual fees for 3.R.(2) be the same as those for fee 
category 3.P. under Sec.  170.31, given the similarity in regulatory 
effort. The FY 2007 proposed application and annual fees for the new 
fee category 3.R.(2) continue to be based on the level of effort for 
fee category 3.P., and are $1,400 and $2,700, respectively.
    Additionally, the proposed rule on expanding the definition of 
byproduct material would also establish a new fee category 3.S., for 
the production of accelerator-produced radioactive materials. That rule 
proposed that the application and annual fees for 3.S. be the same as 
those for fee category 3.C. under Sec.  170.31, given the similarity in 
regulatory effort. The FY 2007 proposed application and annual fees for 
fee category 3.C. are $8,000 and $11,800, respectively. The proposed 
application and annual fees for fee category 3.S. are $8,000 and 
$10,800, respectively. The proposed fees for fee category 3.S. continue 
to be based on the level of effort associated with fee category 3.C. 
licensees. The proposed annual fee for 3.S. is slightly less than that 
for 3.C. because the 3.S. fee does not include a portion of the low-
level waste (LLW) surcharge, while the 3.C. fee does. This is because 
the licensees in fee category 3.C. directly benefit from the NRC's LLW 
activities, but the licensees in fee category 3.S. do not. (The LLW 
surcharge is included only in part 171 annual fees, and therefore does 
not affect the part 170 application fees.)
    Finally, the proposed rule on expanding the definition of byproduct 
material would revise the scope of fee category 3.B. to include 
licenses for repair, assembly, and disassembly of products containing 
radium-226. The FY 2007 proposed application and annual fees for fee 
category 3.B. are $4,500 and $8,300, respectively.
    Fees associated with the new and revised fee categories for the 
expanded definition of byproduct material will not be applicable until 
the effective date of the FY 2007 final fee rule (approximately early 
August 2007), or the effective date of the NRC's final rule on the 
expanded definition of byproduct material, whichever is later. FY 2007 
fees will be applicable to those new fee categories as of that date. As 
mentioned previously, these fee amounts will be updated each year.
    Note that the specific application and inspection hours used in the 
part 170 and 171 fees for all categories of materials users licensees, 
are included in the publicly available work papers supporting this 
proposed rulemaking. The calculation method used to determine materials 
users annual fees is explained in Section II.B.4.g of this document.
4. Administrative Amendments
    The NRC is proposing to revise Sec. Sec.  170.3 and 170.12 to 
clarify that unless otherwise specifically exempted, all specific 
services provided by the Commission are ``special projects'' for which 
full cost fees will be assessed under part 170. This is consistent with 
NRC's existing practice and regulations, but the proposed revisions 
more clearly state this.
    The NRC is also proposing to make other minor administrative 
changes. The NRC is proposing to eliminate the definitions for ``Indian 
organization'' and ``Indian tribe'' in Sec.  170.3, because these terms 
are no longer used in part 170. In Sec.  170.31, fee category 
1.A.(2)(c) would be modified to state that it includes all `other' 
licenses for fuel cycle activities under fee category 1.A(2), including 
hot cell facilities. The NRC is also proposing to eliminate the 
reference to footnote 4 in Sec.  170.31, fee categories 2.A.(2)(a), 
2.a.(2)(b), and 2.A.(2)(c), as this footnote is not applicable to these 
fee categories. Footnote 1(b) under Sec.  170.31 is also proposed to be 
revised to eliminate the listing of all full cost fee categories to 
eliminate redundancy. Additionally, footnote 1(c) under Sec.  170.31 is 
proposed to be revised to eliminate reference to amendments for 
licenses other than import and export licenses, as flat fees for other 
license amendments no longer apply. Finally, fee category 7.B. in Sec.  
170.31 is slightly modified so that the language describing this fee 
category is the same under both parts 170 and 171.
    In summary, the NRC is proposing to make the following changes to 
10 CFR part 170 --
    1. Establish one FY 2007 professional hourly rate of $256 to use in 
assessing fees for specific services;
    2. Revise the license application fees to (a) reflect the FY 2007 
hourly rate and to comply with the CFO Act requirement that fees be 
reviewed biennially and revised as necessary to reflect the cost to the 
agency, (b) establish new flat fees for requests for exemptions from 
import/export licensing requirements, and (c) change facilities flat 
fees to full cost fees;
    3. Establish new fee categories under Sec.  170.31; and
    4. Make minor administrative changes for purposes of clarification 
and consistency.

B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Licenses and 
Fuel Cycle Licenses and Materials Licenses, Including Holders of 
Certificates of Compliance, Registrations, and Quality Assurance 
Program Approvals and Government Agencies Licensed by the NRC

    Beginning with this FY 2007 fee rule, the NRC is proposing to 
remove generic homeland security budgeted resources from the fee base. 
The NRC is also proposing to use its fee relief to reduce all 
licensees' annual fees, and modify some surcharge categories. This 
rulemaking also proposes to codify the NRC's policy regarding when the 
assessment of annual fees begins, and establish rebaselined annual fees 
based on the NRC's FY 2007 budget in H.R. 5427. Additionally, the NRC 
is proposing to revise the way it prorates annual fees for materials 
licenses of $100,000 or more, and establish some new fee categories. 
Finally, the NRC is

[[Page 5114]]

proposing some minor administrative amendments under part 171. The 
proposed amendments are described as follows:
1. Removal of Generic Homeland Security Budgeted Resources From the Fee 
Base
    As mentioned previously, the budgeted resources associated with 
generic homeland security activities are excluded from the NRC's fees 
each year, beginning with this FY 2007 rulemaking, in accordance with 
the Energy Policy Act of 2005. As a result, $35.3 million is removed 
from the NRC's required annual fee recovery in FY 2007. These funds 
cover generic homeland security activities such as rulemakings and 
guidance development. Under the NRC's authority under the IOAA, the NRC 
will continue to bill under part 170 for all licensee-specific homeland 
security-related services provided, including security inspections 
(which include force-on-force exercises) and security plan reviews.
2. Application of ``Fee Relief''/Surcharge Changes
    The NRC is proposing to use its fee relief to reduce all licensees' 
annual fees, based on their percent of the budget. Additionally, the 
NRC is proposing to make some revisions to the activities included in 
the surcharge.
    The NRC applies the 10 percent of its budget that it receives as 
fee relief under OBRA-90, as amended, to offset the costs of activities 
for which it does not charge fees or charges reduced fees. The costs of 
these ``surcharge'' activities are totaled, and then reduced by the 
amount of the NRC's fee relief. In prior years, any remaining surcharge 
costs were then allocated to all licensees' annual fees, based on their 
percent of the budget (i.e., over 80 percent was allocated to power 
reactors each year).
    In FY 2007, the NRC's 10 percent fee relief exceeds the total 
surcharge costs by approximately $9.6 million. Therefore, the NRC is 
proposing to use this fee relief to reduce all licensees' annual fees, 
based on their percent of the budget. This is consistent with the 
existing fee methodology, in that the benefits of the NRC's fee relief 
are allocated to licensees in the same manner as costs were allocated, 
when the NRC did not receive enough fee relief to pay for surcharge 
activities.
    The NRC is also proposing to modify some surcharge categories. 
First, the NRC is proposing to add a new surcharge category in FY 2007 
for the costs associated with a rulemaking on groundwater protection at 
in-situ leach (ISL) uranium extraction facilities. This change is in 
accordance with Commission Staff Requirements Memorandum COMJSM-06-
0001, ``Regulation of Groundwater Protection at In Situ Leach Uranium 
Extraction Facilities'' (ML060830525). Second, the NRC is proposing to 
eliminate the surcharge category for specific services to other Federal 
agencies, because these agencies became subject to part 170 fees to 
recover the costs of these services as of the effective date of the FY 
2006 final fee rule. Third, the NRC is proposing to eliminate the 
surcharge category for activities supporting unlicensed sites, because 
the NRC now charges part 170 fees to owners or operators of unlicensed 
sites in decommissioning (beginning July 25, 2006). All generic 
decommissioning resources associated with these sites have been 
allocated to the generic decommissioning/reclamation surcharge 
category. The budgeted resources associated with unregistered general 
licensees, previously included in the unlicensed sites surcharge 
category, are added to the new surcharge category that includes the ISL 
rulemaking.
    Note the NRC is also modifying the way it calculates the resources 
included in the generic decommissioning/reclamation surcharge category, 
which includes decommissioning resources for all fee classes except 
power reactors and the spent fuel storage/reactor decommissioning fee 
class. This is not a substantive or policy change, but rather a 
calculation method change that will result in a more accurate estimate 
of the actual costs of generic decommissioning/reclamation activities. 
In previous years, the budgeted resources allocated to each fee class 
included budgeted resources for site-specific decommissioning 
activities, and then the part 170 estimated decommissioning revenue was 
subtracted from each fee class. Beginning in FY 2007, all budgeted 
resources for decommissioning/reclamation activities (for fee classes 
other than power reactors and spent fuel storage/reactor 
decommissioning) are initially allocated to the generic 
decommissioning/reclamation surcharge category. This total is then 
reduced by the total estimated part 170 decommissioning revenue from 
all licensees (other than those in the power reactor and spent fuel 
storage/reactor decommissioning fee classes). The NRC is explaining 
this change because it results in a reduction in both the total 
allocated budgeted resources and estimated part 170 revenue for the 
affected fee classes, which are shown in Section II.B.4, ``Revised 
Annual Fees,'' of this document.
    The total budgeted resources for the NRC's surcharge activities in 
FY 2007 are $64.1 million. The NRC's total fee relief in FY 2007 is 
$73.7 million, leaving $9.6 million in fee relief to be used to reduce 
all licensees' annual fees. These values are shown in Table III 
(individual values may not sum to totals due to rounding).

                       Table III.--Surcharge Costs
                          [Dollars in millions]
------------------------------------------------------------------------
                                                              FY 2007
                    Category of costs                     budgeted costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC
 licensee or class of licensee:
    a. International activities.........................           $12.7
    b. Agreement State oversight........................             9.1
2. Activities not assessed part 170 licensing and
 inspection fees or part 171 annual fees based on
 existing law or Commission policy:
    a. Fee exemption for nonprofit educational                       8.7
     institutions.......................................
    b. Costs not recovered from small entities under 10              5.1
     CFR 171.16(c)......................................
3. Activities supporting NRC operating licensees and
 others:
    a. Regulatory support to Agreement States...........            11.1
    b. Generic decommissioning/reclamation (not related             14.9
     to the power reactor and spent fuel storage fee
     classes)...........................................
    c. ISL rulemaking and unregistered general licensees             2.5
                                                         ---------------
        Total surcharge costs...........................            64.1
                                                         ===============

[[Page 5115]]

 
Less 10 percent of NRC's FY 2007 total budget (less NWF,           -73.7
 WIR, and generic homeland security activities).........
                                                         ---------------
    Fee Relief to be Allocated to All Annual Fees.......            -9.6
------------------------------------------------------------------------

    Table IV shows how the NRC is proposing to allocate the $9.6 
million in fee relief to each license fee class (individual amounts may 
not sum to totals due to rounding). As explained previously, the NRC is 
proposing to allocate this fee relief to each license fee class based 
on the percent of the budget for that fee class compared to the NRC's 
total budget. The fee relief would then be used to partially offset the 
required annual fee recovery from each fee class. The proposed 
revisions to Sec. Sec.  171.15(d)(1) and 171.16(e) would clarify that 
the surcharge allocated to annual fees may be negative, i.e., an annual 
fee reduction.
    Separately, the NRC has continued to allocate the LLW surcharge 
costs based on the volume of LLW disposal of certain classes of 
licenses. Table IV also shows the allocation of the LLW surcharge. 
Because LLW activities support NRC licensees, the costs of these 
activities are not offset by the NRC's fee relief. For FY 2007, the LLW 
surcharge costs are $3.4 million. Because the allocated LLW surcharge 
exceeds the fee relief allocated to the materials users fee class, the 
annual fee recovery for this fee class includes a net addition to its 
annual fees for the surcharge costs.

                              Table IV.--Allocation of Fee Relief and LLW Surcharge
----------------------------------------------------------------------------------------------------------------
                                                             LLW surcharge      Fee relief surcharge     Total
                                                        ----------------------    (fee reduction)      surcharge
                                                                              ----------------------------------
                                                          Percent       $M      Percent       $M          $M
Operating Power Reactors...............................         74        2.6       87.7        -8.4        -5.8
Spent Fuel Storage/Reactor Decomm......................  .........  .........        3.6        -0.3        -0.3
Test and Research Reactors.............................  .........  .........        0.1         0           0
Fuel Facilities........................................          8        0.3        4.9        -0.5        -0.2
Materials Users........................................         18        0.6        3.2        -0.3         0.3
Transportation.........................................  .........  .........        0.3         0           0
Rare Earth Facilities..................................  .........  .........        0.0         0           0
Uranium Recovery.......................................  .........  .........        0.2         0           0
                                                        --------------------------------------------------------
    Total Surcharge....................................        100        3.4      100.0        -9.6        -6.1
----------------------------------------------------------------------------------------------------------------

3. Codification of Policy Regarding When the Assessment of Annual Fees 
Begins
    The Commission is proposing to modify Sec. Sec.  171.3 and 171.16, 
to codify its longstanding practice regarding when the assessment of 
annual fees begins for licensees subject to regulations that require a 
specific NRC authorization to operate subsequent to the NRC issuing the 
license. For these licensees, annual fees will not be assessed until 
the NRC grants this authorization. At the present time, this 
codification only affects new uranium enrichment licensees, as 
described further in this document. (The NRC's regulations already 
provide that part 52 combined operating license holders are not subject 
to annual fees until the Commission authorizes fuel load and operation 
of the reactor. This is also described further in this document.)
    All other licensees will continue to be subject to annual fees at 
the time the license is issued. This is consistent with the policy that 
annual fees are assessed to licensees based on the benefits of 
receiving the NRC's authorization to operate, whether or not the 
licensee chooses to operate (with the exception of power reactors in 
decommissioning or possession only status, which are assessed annual 
fees if they have spent fuel onsite). Once a facility is authorized to 
operate, it continues to pay its annual fee(s) even if it shuts down 
for safety or other reasons and needs Commission approval to restart.
    These amendments codify previous Commission decisions on this 
issue. The Commission first adopted this fee policy when it did not 
assess annual fees on those entities holding only a power reactor 
construction permit. The Commission indicated its intention to continue 
this policy when it included a provision in the Fiscal Year 2002 final 
fee rule (67 FR 42611; June 24, 2002), which expanded the scope of part 
171 to cover combined licenses authorizing operation of a power reactor 
(part 52 licenses). The Statement of Considerations for this June 2002 
final rule further explained that an annual fee for part 52 licensees 
will only be assessed after construction has been completed, all 
regulatory requirements have been met, and the Commission authorizes 
operation of the reactor. Additionally, the NRC published a proposed 
rule on March 13, 2006 (71 FR 12782), ``Licenses, Certifications, and 
Approvals for Nuclear Power Plants,'' that included a provision that 
states that a combined license holder does not have to pay an annual 
fee until the Commission authorizes fuel load and operation.
    Other than part 52 licenses, a uranium enrichment facility is the 
only other current type of licensee subject to regulations that require 
a specific NRC authorization to operate subsequent to the NRC issuing 
the license. In the case of uranium enrichment facilities, this 
authorization occurs after the Commission verifies through inspection 
that the facility has been constructed in accordance with the 
requirements of the license, as required by 10 CFR 40.41(g) and 10 CFR 
70.32(k). Therefore, the Commission is proposing to codify its policy 
that annual fees for uranium

[[Page 5116]]

enrichment facilities would be assessed at that time.
    In the future, should the NRC amend its regulations to require 
specific authorizations for other types of licenses before the licensee 
may operate, the NRC will revise part 171 to explicitly state that 
these other types of licenses are also not subject to annual fees until 
the NRC grants the required authorization(s).
4. Revised Annual Fees
    The NRC is proposing to revise its annual fees in Sec. Sec.  171.15 
and 171.16 for FY 2007 to recover approximately 90 percent of the NRC's 
FY 2007 budget authority (less the amounts appropriated from the NWF, 
and for WIR and generic homeland security activities), less the 
estimated amount to be recovered through part 170 fees. The total 
amount to be recovered through annual fees for FY 2007 is $471.5 
million. The required annual fee collection in FY 2006 was $441.7 
million.
    The NRC uses one of two methods to determine the amounts of the 
annual fees, for each type of licensee, established in its fee rule 
each year. One method is ``rebaselining,'' for which the NRC's budget 
is analyzed in detail and budgeted resources are allocated to fee 
classes and categories of licensees. The second method is the ``percent 
change'' method, for which fees are revised based on the percent change 
in the total budget, taking into account other adjustments, such as the 
number of licensees and the projected revenue to be received from part 
170 fees.
    The NRC is proposing to establish revised annual fees for FY 2007 
using the rebaseline method because of significant budget changes in 
the areas of new reactor licensing and homeland security. As explained 
in the FY 2006 final fee rule, the Commission has determined that the 
agency should proceed with a presumption in favor of rebaselining in 
calculating annual fees each year, and that the percent change method 
should be used infrequently. This is because the Commission expects 
that most years there will be budget and other changes that warrant the 
use of the rebaseline method.
    Rebaselining fees results in increased annual fees compared to FY 
2006 for two classes of licenses (power reactors and non-power 
reactors), and decreased annual fees for five classes of licenses 
(spent fuel storage/reactor decommissioning, fuel facilities, uranium 
recovery, rare earth, and transportation). Within the materials users 
fee class, annual fees for most of the categories (sub-classes) of 
licenses decrease, while annual fees for some increase or remain the 
same.
    The most significant factors affecting the changes to the annual 
fee amounts are the increase in budgeted resources for new reactor 
activities, and the removal of generic homeland security resources from 
the fee base in accordance with the Energy Policy Act of 2005. The 
NRC's total fee recoverable budget, as mandated by law, is 
approximately $40 million larger in FY 2007 as compared to FY 2006. 
Because much of this increase is for the additional workload demand in 
the area of new reactor licensing, this increase mainly affects the 
reactor annual fees. Other factors affecting all annual fees include 
adjustments in the distribution of budgeted costs to the different 
classes of licenses (based on the specific activities NRC will perform 
in FY 2007) and the estimated part 170 collections for the various 
classes of licenses. The percentage of the NRC's budget not subject to 
fee recovery remained unchanged at ten percent from FY 2006 to FY 2007.
    Table V shows the rebaselined annual fees for FY 2007 for a 
representative list of categories of licenses. The FY 2006 fee is also 
shown for comparative purposes.

              Table V.--Rebaselined Annual Fees for FY 2007
------------------------------------------------------------------------
                                              FY 2006         FY 2007
       Class/category of licenses           Annual Fee      Annual Fee
------------------------------------------------------------------------
Operating Power Reactors (including           $3,704,000      $4,088,000
 Spent Fuel Storage/Reactor
 Decommissioning annual fee)............
Spent Fuel Storage/Reactor                       173,000         150,000
 Decommissioning........................
Test and Research Reactors (Non-power             80,100          92,300
 Reactors)..............................
High Enriched Uranium Fuel Facility.....       5,420,000       4,451,000
Low Enriched Uranium Fuel Facility......       1,596,000       1,345,000
UF6 Conversion Facility.................       1,046,000         881,000
Conventional Mills......................          65,900          35,700
Typical Materials Users:
    Radiographers.......................          15,400          14,100
    Well Loggers........................           4,800           4,300
    Gauge Users (Category 3P)...........           2,900           2,700
    Broad Scope Medical.................          33,000          28,800
------------------------------------------------------------------------

    The budgeted costs allocated to each class of licenses and the 
calculations of the rebaselined fees are described in paragraphs a. 
through h. below. The work papers which support this rule show in 
detail the allocation of NRC's budgeted resources for each class of 
licenses and how the fees are calculated. The reports included in these 
work papers summarize the FY 2007 budgeted FTE and contract dollars 
allocated to each fee class and surcharge category at the planned 
activity and program level, and compare these allocations to those used 
to develop final FY 2006 fees. The work papers are available 
electronically at the NRC's Electronic Reading Room on the Internet at 
Web site address http://www.nrc.gov/reading-rm/adams.html. During the 
30-day public comment period, the work papers may also be examined at 
the NRC Public Document Room located at One White Flint North, Room O-
1F22, 11555 Rockville Pike, Rockville, MD 20852-2738.
    a. Fuel Facilities. The FY 2007 budgeted cost to be recovered in 
the annual fees assessment to the fuel facility class of licenses 
[which includes licensees in fee categories 1.A.(1)(a), 1.A.(1)(b), 
1.A.(2)(a), 1.A.(2)(b), 1.A.(2)(c), 1.E., and 2.A.(1), under Sec.  
171.16] is approximately $20.6 million. This value is derived based on 
the full cost of budgeted resources associated with all activities that 
support this fee class, which is reduced by estimated part 170 
collections and adjusted to reflect the net allocated surcharge, 
allocated generic transportation resources (see Section II.B.4.h of 
this document for further discussion), and billing adjustments. The 
summary calculations used to derive this value are presented in Table

[[Page 5117]]

VI for FY 2007, with FY 2006 values shown for comparison purposes 
(individual values may not sum to totals due to rounding):

     Table VI.--Annual Fee Summary Calculations for Fuel Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations fuel facility                       FY 2007
                fee class                 FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................           $39.6           $31.9
Less estimated part 170 receipts........           -15.8           -11.7
                                         -------------------------------
    Net part 171 resources..............            23.8            20.2
Plus allocated generic transportation...            +0.4            +0.6
Plus allocated surcharge................            +0.5            -0.2
Billing adjustments (including                      +0.0            +0.1
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            24.8            20.6
------------------------------------------------------------------------

    The decrease in fuel facilities FY 2007 total budgeted resources 
compared to FY 2006 is due mostly to exclusion of homeland security 
generic activities from the fee base, as well as lower budgeted 
resources for certain activities.
    The total required annual fee recovery amount is allocated to the 
individual fuel facility licensees based on the effort/fee 
determination matrix established in the FY 1999 final fee rule (64 FR 
31447; June 10, 1999). In the matrix (which is included in the NRC work 
papers that are publicly available), licensees are grouped into 
categories according to their licensed activities (i.e., nuclear 
material enrichment, processing operations, and material form) and 
according to the level, scope, depth of coverage, and rigor of generic 
regulatory programmatic effort applicable to each category from a 
safety and safeguards perspective. This methodology can be applied to 
determine fees for new licensees, current licensees, licensees in 
unique license situations, and certificate holders.
    This methodology is adaptable to changes in the number of licensees 
or certificate holders, licensed or certified material and/or 
activities, and total programmatic resources to be recovered through 
annual fees. When a license or certificate is modified, it may result 
in a change of category for a particular fuel facility licensee as a 
result of the methodology used in the fuel facility effort/fee matrix. 
Consequently, this change may also have an effect on the fees assessed 
to other fuel facility licensees and certificate holders. For example, 
if a fuel facility licensee amends its license/certificate in such a 
way (e.g., decommissioning or license termination) that results in it 
not being subject to part 171 costs applicable to the fee class, then 
the budgeted costs for the safety and/or safeguards components will be 
spread among the remaining fuel facility licensees/certificate holders.
    The methodology is applied as follows. First, a fee category is 
assigned based on the nuclear material and activity authorized by 
license or certificate. Although a licensee/certificate holder may 
elect not to fully use a license/certificate, the license/certificate 
is still used as the source for determining authorized nuclear material 
possession and use/activity. Second, the category and license/
certificate information are used to determine where the licensee/
certificate holder fits into the matrix. The matrix depicts the 
categorization of licensees/certificate holders by authorized material 
types and use/activities.
    Once the structure of the matrix is established, the NRC's fuel 
facility project managers and regulatory analysts determine the level 
of effort associated with regulating each of these facilities. This is 
done by assigning, for each fuel facility, separate effort factors for 
the safety and safeguards activities associated with each type of 
regulatory activity. The matrix includes ten types of regulatory 
activities, including enrichment and scrap/waste related activities 
(see the work papers for the complete list). Effort factors are 
assigned as follows: zero (no regulatory effort), one (low regulatory 
effort), five (moderate regulatory effort), and ten (high regulatory 
effort). These effort factors are then totaled for each fee category, 
so that each fee category has a total effort factor for safety 
activities and a total effort factor for safeguards activities.
    The budgeted resources for safety activities are then allocated to 
each fee category based on its percent of the total regulatory effort 
for safety activities. For example, if the total effort factor for 
safety activities for all fuel facilities is 100, and the total effort 
factor for safety activities for a given fee category is ten, that fee 
category will be allocated ten percent of the total budgeted resources 
for safety activities. Similarly, the budgeted resources for safeguards 
activities are allocated to each fee category based on its percent of 
the total regulatory effort for safeguards activities. The surcharge 
allocated to the fuel facility fee class (which is a fee reduction in 
FY 2007) is allocated to each fee category based on its percent of the 
total regulatory effort for both safety and safeguards activities. The 
annual fee per licensee is then calculated by dividing the total 
allocated budgeted resources for the fee category by the number of 
licensees in that fee category.
    The effort factors for the various fuel facility fee categories are 
summarized in Table VII. The value of the effort factors shown, as well 
as the percent of the total effort factor for all fuel facilities, 
reflects the total for each fee category (not per facility). Note that 
the effort factors for the High Enriched Uranium Fuel fee category have 
changed from FY 2006. The safeguards factor increased in FY 2007 to 
reflect greater workload in the area of handling sensitive and 
classified information. The safety factor is lower in FY 2007 to 
reflect lower effort factors for pellet processing activities for this 
fee category. Taking into account both of these changes, the total 
safety and safeguards effort factor change is relatively small.

[[Page 5118]]



                                 Table VII.--Effort Factors for Fuel Facilities
----------------------------------------------------------------------------------------------------------------
                                                                                    Effort factors  (percent of
                                                                     Number of                total)
                  Facility type (fee category)                      facilities   -------------------------------
                                                                                      Safety        Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel......................................               2       91 (35.5)      101 (53.4)
Uranium Enrichment..............................................               2       70 (27.3)       40 (21.2)
Low Enriched Uranium Fuel.......................................               3       66 (25.8)       21 (11.1)
UF6 Conversion..................................................               1        12 (4.7)         7 (3.7)
Limited Operations..............................................               1         8 (3.1)         3 (1.6)
Gas Centrifuge Enrichment Demonstration.........................               1         3 (1.2)        15 (7.9)
Hot Cell........................................................               1         6 (2.3)         2 (1.1)
----------------------------------------------------------------------------------------------------------------

    Applying the FY 2007 effort factors (as summarized in Table VII) to 
the safety, safeguards, and surcharge components of the $20.6 million 
total annual fee amount for the fuel facility class results in annual 
fees for each licensee within the categories of this class summarized 
in Table VIII.

              Table VIII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                               FY 2007
                Facility type (fee category)                  annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel.................................   $4,451,000
Uranium Enrichment.........................................    2,550,000
Low Enriched Uranium.......................................    1,345,000
UF6 Conversion.............................................      881,000
Gas Centrifuge Enrichment Demonstration....................      835,000
Limited Operations Facility................................      510,000
Hot Cell (and others)......................................      371,000
------------------------------------------------------------------------

    Note that the NRC issued a construction and operation license to a 
new uranium enrichment facility in June 2006. As explained in Section 
II.B.3, ``Codification of Policy Regarding When the Assessment of 
Annual Fees Begins'' of this document, this facility would not be 
subject to annual fees until the Commission authorizes operation by 
verifying through inspection that the facility has been constructed in 
accordance with the requirements of the license, as required by 10 CFR 
40.41(g) and 10 CFR 70.32(k). The annual fee applicable to any type of 
new uranium enrichment facility is the annual fee in Sec.  171.16, fee 
category 1.E., Uranium Enrichment, unless the NRC establishes a new fee 
category for these facilities.
    b. Uranium Recovery Facilities. The total FY 2007 budgeted cost to 
be recovered through annual fees assessed to the uranium recovery class 
[which includes licensees in fee categories 2.A.(2)(a), 2.A.(2)(b), 
2.A.(3), 2.A.(4), 2.A.(5) and 18.B., under Sec.  171.16], is 
approximately $0.86 million. The derivation of this value is shown in 
Table IX, with FY 2006 values shown for comparison purposes. 
(Individual values may not sum to totals due to rounding.)

     Table IX.--Annual Fee Summary Calculations for Uranium Recovery
                               Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
    Summary fee calculations uranium                          FY 2007
           recovery fee class             FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................           $2.34           $1.30
Less estimated part 170 receipts........           -1.29           -0.43
                                         -------------------------------
    Net part 171 resources..............            1.05            0.87
Plus allocated generic transportation...           + N/A           + N/A
Plus allocated surcharge................          + 0.01          - 0.02
Billing adjustments (including                    + 0.00          + 0.00
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            1.06            0.86
------------------------------------------------------------------------

    The decrease in the total required annual fee recovery is mainly 
due to a reduction in uranium recovery licensing and inspection 
resources allocated to this fee class for fee recovery. One main reason 
for this reduction is the reallocation of uranium recovery licensing 
and inspection resources to a rulemaking on groundwater protection at 
ISL uranium extraction facilities. These resources are allocated to the 
surcharge in FY 2007, consistent with the Commission direction on this 
matter, as discussed in Section II.B.2, ``Application of `Fee Relief'/
Surcharge Changes,'' of this document.
    Of the required annual fee collections, approximately $657,000 
would be assessed to the Department of Energy for its Uranium Mill 
Tailings Radiation Control Act (UMTRCA) Title I and Title II licensees 
under fee category 18.B. The remaining $200,000 would be recovered 
through annual fees assessed to the other licensees in this fee class, 
i.e., conventional mills, in-situ leach solution mining facilities, 
11e.(2) mill tailings disposal facilities (incidental to existing 
tailings sites), and a uranium water treatment facility (discussed 
further in this document).
    The NRC is proposing to add to the uranium recovery fee class a new 
fee category (2.A.(5) under Sec.  171.16) for uranium water treatment 
facilities. This is because the NRC may license a facility of this type 
during FY 2007, and therefore is proposing to establish the associated 
annual fee in this fee rule. The NRC is proposing to establish a new 
fee category for this type of facility because the NRC has not 
previously licensed a facility of this type, and therefore the existing 
fee categories do not clearly cover this type of facility.

[[Page 5119]]

Although included in the uranium recovery fee class, this type of 
facility is a separate fee category within this fee class. The 
methodology for calculating the proposed annual fee for this type of 
facility is the same as that used for other facilities in this fee 
class, but different input values are used in the fee matrix to 
determine the actual fee amount for this facility (as described further 
in this document), resulting in a different fee amount for this new fee 
category.
    In the FY 2002 final fee rule (67 FR 42611; June 24, 2002), the NRC 
established a fee recovery methodology for the uranium recovery fee 
class that would allocate the total annual fee amount for this fee 
class, less the amounts specifically budgeted for Title I activities, 
equally between DOE (for its UMTRCA Title I and Title II licensees) and 
the other licensees in this fee class. The NRC is proposing to slightly 
change this methodology, beginning with the FY 2007 proposed fee rule, 
so that 45 percent of the total annual fee amount, less the amounts 
specifically budgeted for Title I activities, is allocated to DOE's 
UMTRCA annual fee. The remaining 55 percent of the total annual fee 
amount (less the amounts specifically budgeted for Title I activities) 
would be allocated to the other licensees in this fee class. The NRC is 
proposing this change because, as mentioned previously, the uranium 
recovery fee class would include a new type of facility in FY 2007 (fee 
category 2.A.(5), uranium water treatment). Because the resources 
associated with this new facility are less directly related to DOE 
UMTRCA activities than are the resources for other licensees in this 
fee class, the NRC believes it is appropriate to allocate a somewhat 
smaller percentage of the generic resources supporting this fee class 
to DOE.
    This would result in an annual fee being assessed to DOE to recover 
the costs specifically budgeted for NRC's Title I activities plus 45 
percent of the remaining annual fee amount, including the surcharge and 
generic/other costs, for the uranium recovery class. The remaining 55 
percent of the surcharge and generic/other costs are assessed to the 
other NRC licensees in this fee class that are subject to annual fees. 
The costs to be recovered through annual fees assessed to the uranium 
recovery class are shown in Table X.

   Table X.--Costs Recovered Through Annual Fees; Uranium Recovery Fee
                                  Class
------------------------------------------------------------------------
 
------------------------------------------------------------------------
DOE Annual Fee Amount [Uranium Mill Tailings Radiation
 Control Act (UMTRCA) Title I and Title II general
 licenses]:
    UMTRCA Title I budgeted costs.......................        $493,586
    45 percent of generic/other uranium recovery                 171,447
     budgeted costs.....................................
    45 percent of uranium recovery surcharge............          -7,993
                                                         ---------------
        Total Annual Fee Amount for DOE (rounded).......         657,000
Annual Fee Amount for Other Uranium Recovery Licenses:
    55 percent of generic/other uranium recovery                 209,546
     budgeted costs.....................................
    55 percent of uranium recovery surcharge............          -9,770
                                                         ---------------
        Total Annual Fee Amount for Other Uranium                199,776
         Recovery Licenses..............................
------------------------------------------------------------------------

    The NRC is proposing to continue to use a matrix (which is included 
in the supporting work papers) to determine the level of effort 
associated with regulating the different (non-DOE) licensees in this 
fee class. The weights derived in this matrix are used to allocate the 
approximately $200,000 annual fee amount to these licensees. The use of 
this uranium recovery annual fee matrix was established in the FY 1995 
final fee rule (60 FR 32217; June 20, 1995). The FY 2007 proposed 
matrix, which includes some modifications from the FY 2006 matrix, and 
the methodology using this matrix, is described as follows.
    First, the methodology identifies the categories of licenses 
included in this fee class (besides DOE). In FY 2007, these categories 
are conventional uranium mills (Class I facilities), uranium solution 
mining facilities (Class II facilities), mill tailings disposal 
facilities (11e.(2) disposal facilities), and uranium water treatment 
facilities. The uranium water treatment facility is a proposed new fee 
category in the uranium recovery fee class in FY 2007, as mentioned 
previously.
    Second, the matrix identifies the types of operating activities 
that support these licensees. In FY 2007, the activities related to 
generic decommissioning/reclamation are no longer included in the 
matrix, because generic decommissioning/reclamation activities are 
included in the surcharge, and therefore need not be a factor in 
determining annual fees. The activities included in the FY 2007 
proposed matrix are ``operations,'' ``waste operations,'' and 
``groundwater remediation.'' The relative weight of each type of 
activity is then determined, based on the regulatory resources 
associated with each activity. The ``operations,'' ``waste 
operations,'' and ``groundwater remediation'' activities have weights 
of 10, 5, and 10, respectively, in the FY 2007 proposed matrix.
    Once the structure of the matrix is established, the NRC's uranium 
recovery project managers and regulatory analysts determine the level 
of effort associated with regulating each of these facilities. This is 
done by assigning, for each fee category, separate effort factors for 
each type of regulatory activity in the matrix. Effort factors are 
assigned as follows: Zero (no regulatory effort), two (minor regulatory 
effort), five (some regulatory effort), and ten (significant regulatory 
effort). These effort factors are first multiplied by the relative 
weight assigned to each activity (described previously). Total effort 
factors by fee category, and per licensee in each fee category, are 
then calculated. These effort factors thus reflect the relative 
regulatory effort associated with each licensee and fee category.
    The effort factors per licensee and per fee category, for each of 
the non-DOE fee categories included in the uranium recovery fee class, 
are as follows:

[[Page 5120]]



                             Table XI.--Effort Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
                                                                                        Total effort factor
                  Fee category                       Number of     Effort factor -------------------------------
                                                     licensees     per licensee        Value       Percent total
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)....................               1              75              75              18
Class II (solution mining)......................               3              75             225              54
11e.(2) disposal................................               0               0               0               0
11e.(2) disposal incidental to existing tailings               1              75              75              18
 sites..........................................
Uranium water treatment.........................               1              45              45              11
----------------------------------------------------------------------------------------------------------------

    Applying these factors to the approximately $200,000 in budgeted 
costs to be recovered from non-DOE uranium recovery licensees results 
in the following proposed annual fees for FY 2007:

         Table XII.--Annual Fees for Uranium Recovery Licensees
                            [Other than DOE]
------------------------------------------------------------------------
                                                               FY 2007
                       Facility type                          annual fee
------------------------------------------------------------------------
Class I (conventional mills)...............................      $35,700
Class II (solution mining).................................       35,700
11e.(2) disposal...........................................          N/A
11e.(2) disposal incidental to existing tailings sites.....       35,700
Uranium water treatment....................................       21,400
------------------------------------------------------------------------

    Note because there are no longer any 11e.(2) disposal facilities 
under the NRC's regulatory jurisdiction, the NRC has not allocated any 
budgeted resources for these facilities, and therefore has not 
established an annual fee for this fee category. If NRC issues a 
license for this fee category in the future, then the Commission will 
establish the appropriate annual fee.
    c. Operating Power Reactors. The approximately $409.6 million in 
budgeted costs proposed to be recovered through FY 2007 annual fees 
assessed to the power reactor class was calculated as shown in Table 
XIII. (FY 2006 values shown for comparison purposes; individual amounts 
may not sum to totals due to rounding.)

    Table XIII.--Annual Fee Summary Calculations for Operating Power
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
Summary fee calculations operating power                      FY 2007
           reactors fee class              FY 2006 final     proposed
------------------------------------------------------------------------
Total budgeted resources................          $515.9          $583.8
Less estimated part 170 receipts........          -155.2          -170.5
                                         -------------------------------
    Net part 171 resources..............           360.7           413.3
Plus allocated transportation...........            +0.8            +1.1
Plus allocated surcharge................            +5.5            -5.8
Billing adjustments (including                      +0.2            +1.1
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..           367.2           409.6
------------------------------------------------------------------------

    The budgeted costs proposed to be recovered through annual fees to 
power reactors are divided equally among the 104 power reactors 
licensed to operate. This results in a FY 2007 proposed annual fee of 
$3,938,000 per reactor. Additionally, each power reactor licensed to 
operate would be assessed the FY 2007 proposed spent fuel storage/
reactor decommissioning annual fee of $150,000. This results in a total 
FY 2007 proposed annual fee of $4,088,000 for each power reactor 
licensed to operate.
    The proposed annual fee for power reactors increases in FY 2007 
compared to FY 2006 due to an increase in budgeted resources for a 
number of activities, including regulatory infrastructure for new 
reactor licensing activities and preparations for future combined 
license applications. This increase is partially offset by the 
exclusion of generic homeland security activities from the fee base and 
higher estimated part 170 collections. The NRC estimates an increase in 
part 170 collections of about 10 percent from operating power reactors 
in FY 2007; these collections offset the required annual fee recovery 
amount by a total of over $170.5 million.
    The proposed annual fees for power reactors are presented in Sec.  
171.15. As discussed previously in Section II.B.3, ``Codification of 
Policy Regarding When the Assessment of Annual Fees Begins'' of this 
document, the NRC recently published a proposed rulemaking (``Licenses, 
Certifications, and Approvals for Nuclear Power Plants,'' 71 FR 12782; 
March 13, 2006) that included a provision that states that a combined 
license holder does not have to pay an annual fee until the Commission 
authorizes fuel load and operation.
    d. Spent Fuel Storage/Reactor Decommissioning. For FY 2007, 
budgeted costs of approximately $23.7 million for spent fuel storage/
reactor decommissioning are proposed to be recovered through annual 
fees assessed to part 50 power reactors, and to part 72 licensees who 
do not hold a part 50 license. Those reactor licensees that have ceased 
operations and have no fuel onsite are not subject to these annual 
fees. Table XIV shows the calculation of this annual fee amount. (FY 
2006 values shown for comparison purposes; individual values may not 
sum to totals due to rounding.)

[[Page 5121]]



 Table XIV.--Annual Fee Summary Calculations for the Spent Fuel Storage/
                    Reactor Decommissioning Fee Class
                          [Dollars in millions]
------------------------------------------------------------------------
   Summary fee calculations spent fuel
   storage/reactor decommissioning fee     FY 2006 final      FY 2007
                  class                                      proposed
------------------------------------------------------------------------
Total budgeted resources................           $26.6           $23.7
Less estimated part 170 receipts........            -5.8            -5.2
                                         -------------------------------
    Net part 171 resources..............            20.8            18.5
Plus allocated generic transportation...            +0.2            +0.3
Plus allocated surcharge................            +0.2            -0.3
Billing adjustments (including                      +0.0            +0.0
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            21.2            18.4
------------------------------------------------------------------------

    The required annual fee recovery amount is divided equally among 
123 licensees, resulting in a FY 2007 proposed annual fee of $150,000 
per licensee. The value of total budgeted resources for this fee class 
decreased in FY 2007 compared to FY 2006 due to a decrease in the 
budgeted resources for decommissioning activities and the exclusion of 
generic homeland security activities from the fee base.
    e. Test and Research Reactors (Non-power Reactors). Approximately 
$369,000 in budgeted costs is proposed to be recovered through annual 
fees assessed to the test and research reactor class of licenses for FY 
2007. Table XV summarizes the proposed annual fee calculation for test 
and research reactors for FY 2007. (FY 2006 values shown for comparison 
purposes; individual values may not sum to totals due to rounding.)

    Table XV.--Annual Fee Summary Calculations for Test and Research
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
    Summary fee calculations/test and                         FY 2007
       research reactors fee class        FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................           $0.88           $0.85
Less estimated part 170 receipts........          - 0.57          - 0.48
                                         -------------------------------
    Net part 171 resources..............            0.31            0.37
Plus allocated generic transportation...          + 0.01          + 0.01
Plus allocated surcharge................          + 0.01          - 0.01
Billing adjustments (including                     -0.00          + 0.00
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            0.32            0.37
------------------------------------------------------------------------

    This required annual fee recovery amount is divided equally among 
the four test and research reactors subject to annual fees, and results 
in a FY 2007 proposed annual fee of $92,300 for each licensee. The 
increase in annual fees from FY 2006 to FY 2007 is due to lower part 
170 revenue estimates. The FY 2007 part 170 revenue estimate is based 
on the last year of invoices for this fee class, adjusted for changes 
in budgeted resources.
    f. Rare Earth Facilities. The FY 2007 budgeted costs of $89,300 for 
rare earth facilities (fee category 2.A.(2)(c) under Sec.  171.16) 
proposed to be recovered through annual fees would be assessed to one 
licensee who has a specific license for receipt and processing of 
source material, resulting in a FY 2007 proposed annual fee of $89,300. 
Table XVI summarizes the proposed annual fee calculation for the rare 
earth fee class for FY 2007. (FY 2006 values shown for comparison 
purposes; individual values may not sum to totals due to rounding.)

  Table XVI.--Annual Fee Summary Calculations for Rare Earth Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations/rare earth fee                      FY 2007
                  class                   FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................          $0.831          $0.101
Less estimated part 170 receipts........         - 0.740         - 0.010
                                         -------------------------------
    Net part 171 resources..............           0.091           0.091
Plus allocated generic transportation...           + N/A           + N/A
Plus allocated surcharge................         + 0.005         - 0.001
Billing adjustments (including                   + 0.000         + 0.000
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..           0.096           0.089
------------------------------------------------------------------------


[[Page 5122]]

    The total allocated resources for this fee class decreased in FY 
2007 compared to FY 2006, primarily due to a decrease in budgeted 
resources for licensing activities.
    g. Materials Users. Table XVII shows the calculation of the FY 2007 
proposed annual fee amount for materials users licensees. (FY 2006 
values shown for comparison purposes; individual values may not sum to 
totals due to rounding.) Note the following fee categories under Sec.  
171.16 are included in this fee class: 1.C., 1.D., 2.B., 2.C., 3.A. 
through 3.S., 4.A.-4.C., 5.A., 5.B., 6.A., 7.A. through 7.C., 8.A., 
9.A. through 9.D., 16, and 17.

    Table XVII.--Annual Fee Summary Calculations for Materials Users
                          [Dollars in millions]
------------------------------------------------------------------------
Summary fee calculations/materials users                      FY 2007
                fee class                 FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................           $30.3           $25.6
Less estimated part 170 receipts........           - 2.0           - 1.4
                                         -------------------------------
    Net part 171 resources..............            28.2            24.2
Plus allocated generic transportation...           + 0.6           + 1.0
Plus allocated surcharge................           + 0.8           + 0.3
Billing adjustments (including                     + 0.0           + 0.0
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            29.6            25.5
------------------------------------------------------------------------

    The total required annual fees proposed to be recovered from 
materials licensees decreased in FY 2007 mainly because of the 
exclusion of generic homeland security activities from the fee base, as 
well as decreases in the budgeted resources allocated to this fee class 
for activities such as decommissioning and materials information 
technology.
    To equitably and fairly allocate the $25.5 million in FY 2007 
budgeted costs to be recovered in annual fees assessed to the 
approximately 4,400 billable diverse materials users licensees, the NRC 
is proposing to continue to base the annual fees for each fee category 
within this class on the part 170 application fees and estimated 
inspection costs for each fee category. Because the application fees 
and inspection costs are indicative of the complexity of the license, 
this approach continues to provide a proxy for allocating the generic 
and other regulatory costs to the diverse categories of licenses based 
on how much it costs the NRC to regulate each category. This proposed 
fee calculation also continues to consider the inspection frequency 
(priority), which is indicative of the safety risk and resulting 
regulatory costs associated with the categories of licenses.
    The proposed annual fee for these categories of materials users 
licenses would be developed as follows:
    Annual fee = Constant x [Application Fee + (Average Inspection Cost 
divided by Inspection Priority)] + Inspection Multiplier x (Average 
Inspection Cost divided by Inspection Priority) + Unique Category 
Costs.
    The constant is the multiple necessary to recover approximately 
$17.9 million in general costs (including allocated generic 
transportation costs) and is 0.93 for FY 2007. The inspection 
multiplier is the multiple necessary to recover approximately $7.1 
million in inspection costs, and is 1.54 for FY 2007. The unique 
category costs are any special costs that the NRC has budgeted for a 
specific category of licenses. For FY 2007, approximately $155,000 in 
budgeted costs for the implementation of revised 10 CFR part 35, 
Medical Use of Byproduct Material (unique costs), has been allocated to 
holders of NRC human use licenses.
    The annual fee proposed to be assessed to each licensee also 
includes a share of the $309,000 in fee relief allocated to the 
materials users fee class (see Section II.B.2, ``Application of `Fee 
Relief'/Surcharge Changes'' of this document), and for certain 
categories of these licensees, a share of the approximately $620,000 in 
LLW surcharge costs allocated to the fee class.
    The annual fee for each fee category is shown in Sec.  171.16(d). 
Annual fees for most fee categories within the materials users fee 
class decrease, while some increase or remain the same. As indicated 
previously, changes in the FY 2007 proposed annual fees for categories 
of licensees within the materials users fee class reflect not only 
changes in the budgeted resources supporting this fee class, but also 
changes in the estimates of average professional staff time for 
materials users license applications and inspections, derived from the 
biennial review performed for the FY 2007 fee rule (see discussion of 
the biennial review under Section II.A.2, ``Flat Application Fee 
Changes'' of this document). Accordingly, the relatively large 
percentage decrease in the proposed annual fee for fee category 3.H 
under Sec.  171.16 is the result of a significant decrease to the 
average professional staff time estimates.
    h. Transportation. Table XVIII shows the calculation of the FY 2007 
generic transportation budgeted resources proposed to be recovered 
through annual fees. (FY 2006 values shown for comparison purposes.)

    Table XVIII.--Annual fee summary calculations for transportation
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations/transportation                      FY 2007
                fee class                 FY 2006  final     proposed
------------------------------------------------------------------------
Total budgeted resources................            $6.3            $4.9
Less estimated part 170 receipts........            -1.2            -0.8
                                         -------------------------------
    Net part 171 resources (required                 5.1             4.1
     annual fee recovery)...............
------------------------------------------------------------------------


[[Page 5123]]

    The total FY 2007 budgeted resources for generic transportation 
activities, including those to support DOE Certificate of Compliance 
(CoCs), is $4.1 million. [Generic transportation resources associated 
with fee-exempt entities are not included in this total; these costs 
are included in the appropriate surcharge category (e.g., the surcharge 
category for nonprofit educational institutions).] The budgeted 
resources for these activities decreased from FY 2006 to FY 2007 mostly 
due to the removal of generic homeland security activities from the fee 
base.
    Consistent with the policy established in the NRC's FY 2006 final 
fee rule, the NRC is proposing to recover generic transportation costs 
unrelated to DOE as part of existing annual fees for license fee 
classes. NRC is proposing to continue to assess a separate annual fee 
under Sec.  171.16, fee category 18.A., for DOE transportation 
activities.
    These resources are proposed to be distributed to DOE (to be 
included in its annual fee under fee category 18.A. of Sec.  171.16) 
and each license fee class based on the CoCs used by DOE and each fee 
class, as a proxy for the generic resources expended for each fee 
class. As such, the amount of the generic resources allocated is 
calculated by multiplying the percentage of total CoCs used by each fee 
class (and DOE) by the total generic transportation resources to be 
recovered.
    The proposed distribution of these resources to the license fee 
classes and DOE is shown in Table XIX (individual values may not sum to 
totals due to rounding). The distribution is adjusted to account for 
the licensees in each fee class that are fee exempt. [For example, if 
three CoCs benefit the entire test and research reactor class, but only 
four of 30 test and research reactors are subject to annual fees, the 
number of CoCs used to determine the proportion of generic 
transportation resources allocated to test and research reactor annual 
fees equals ((4/30)*3), or 0.4 CoCs.]

                      Table XIX.--Distribution of Generic Transportation Resources, FY 2007
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Allocated
                                                                Number CoCs      Percentage of       generic
                   License fee class/DOE                      benefitting fee     total CoCs      transportation
                                                              class (or DOE)                        resources
----------------------------------------------------------------------------------------------------------------
TOTAL......................................................             131               100              $4.08
DOE........................................................              35                26.8             1.09
Operating Power Reactors...................................              36                27.5             1.12
Spent Fuel Storage/Reactor Decommissioning.................               9                 6.9             0.28
Test and Research Reactors.................................               0.4               0.3             0.01
Fuel Facilities............................................              19                14.5             0.59
Materials Users............................................              31.4              24               0.98
----------------------------------------------------------------------------------------------------------------

    The NRC is proposing to continue to assess DOE an annual fee based 
on the part 71 CoCs it holds, and not allocate these DOE-related 
resources to other licensees' annual fees, because these resources 
specifically support DOE. Note that DOE's proposed annual fee includes 
a reduction for the fee relief (see Section II.B.2 of this document), 
resulting in a total proposed annual fee of 1,066,000 for FY 2007. This 
fee decreases from last year primarily due to exclusion of homeland 
security activities from the fee base.
5. Prorating Annual Fees
    The NRC is proposing to revise the annual fee proration provisions 
for certain materials licenses. Section 171.17(b) currently states that 
new licenses issued on or after April 1 of the FY will not be assessed 
an annual fee for that FY, and that new licenses issued from October 1 
to March 31 will be assessed one-half the annual fee for that FY. As 
explained in Sec.  171.17(b), similar proration provisions also apply 
to applications for license terminations and requests for downgraded 
licenses.
    The NRC is proposing to revise the annual fee proration provisions 
for new licenses, license terminations, and downgraded licenses, for 
all materials licensees subject to an annual fee of 100,000 or more for 
a single fee category. For these licenses, annual fees for new, 
terminated, or downgraded licenses would be based on the number of days 
in the FY the license was in effect. This is consistent with the 
proration provisions for reactors and part 72 licensees who do not hold 
part 50 licenses, as established in Sec.  171.17(a). The NRC is 
proposing this change because it believes it is more fair to prorate 
all fees over 100,000 in the same manner, regardless of whether the fee 
is associated with a power reactor, part 72 licensee, or materials 
licensee.
6. New Fee Categories
    As discussed in Sections II.A.3, ``New Fee Categories,'' and 
III.B.4.b, ``Uranium Recovery Facilities'' of this document, the NRC is 
proposing to amend Sec.  171.16 to establish a new fee category 
(2.A.(5)) for uranium water treatment facilities. The NRC recently 
received an application for this type of license, which was unique to 
the NRC and therefore not covered by existing materials users fee 
categories.
    Also as discussed in Section II.A.3 of this document, the NRC is 
proposing to update the fee amounts for some new and revised proposed 
fee categories that were included in another NRC rulemaking, 
``Requirements for Expanded Definition of Byproduct Material'' (71 FR 
42952; July 28, 2006). Section II.A.3 includes both the FY 2007 
proposed part 170 and part 171 fees for these new and revised fee 
categories, as well as the explanation for the need for these new fee 
categories.
    Fees associated with the new and revised fee categories for the 
expanded definition of byproduct material will not be applicable until 
the effective date of the FY 2007 final fee rule (approximately early 
August 2007), or the effective date of the NRC's final rule on the 
expanded definition of byproduct material, whichever is later. FY 2007 
fees will be applicable to those new fee categories as of that date. As 
mentioned previously, these fee amounts will be updated each year.
    Note the specific application and inspection hours used in the part 
170 and 171 fees for all categories of materials users licensees are 
included in the publicly available workpapers supporting this 
rulemaking. The calculation method used to determine materials users 
annual fees is explained in Section II.B.4.g of this document.
7. Administrative Amendments
    The NRC is proposing to modify Sec.  171.15(b)(2)(iii) to clarify 
that the types of activities included in the power

[[Page 5124]]

reactor annual fees include generic activities for new reactors. This 
is not a policy change, but rather a clarification of existing policy. 
Further, the NRC is proposing to revise Sec.  171.15(d)(1)(iii) to 
eliminate reference to Federal agency activities being included in the 
surcharge, because these activities are now recovered through part 170 
fees to Federal agencies or included in other surcharge categories. 
Additionally, the NRC is proposing to modify the last sentence of 
footnote 1 under Sec.  171.16 to clarify that licensees paying fees 
under categories 1.A. and 1.E. are not subject to fees under categories 
1.C. and 1.D. for sealed sources authorized in the same license. This 
is to enhance the consistency of this footnote to a similar footnote in 
Sec.  170.31 (footnote 4). Finally, fee category 1.A.(2)(c) would be 
modified to state that it includes all ``other'' licenses for fuel 
cycle activities under 1.A.(2), including hot cell facilities, 
consistent with this same proposed change for fee category 1.A.(2)(c) 
under part 170.
    In summary, the NRC is proposing to--
    1. Remove generic homeland security resources from the fee base, 
beginning in FY 2007, to comply with the Energy Policy Act of 2005;
    2. Use the NRC's fee relief to all licensees' annual fees, based on 
their percent of the NRC budget, and make changes to certain surcharge 
categories;
    3. Modify Sec. Sec.  171.3 and 171.16 to codify its policy 
regarding when the assessment of annual fees begins;
    4. Establish rebaselined annual fees for FY 2007;
    5. Revise the annual fee proration provisions for new, terminated, 
and downgraded materials licenses;
    6. Establish some new fee categories to cover new NRC activities; 
and
    7. Make certain administrative changes for purposes of 
clarification and consistency.

III. Plain Language

    The Presidential Memorandum dated June 1, 1998, entitled, ``Plain 
Language in Government Writing'' directed that the Government's writing 
be in plain language. This memorandum was published on June 10, 1998 
(63 FR 31883). The NRC requests comments on this proposed rule 
specifically with respect to the clarity and effectiveness of the 
language used. Comments should be sent to the address listed under the 
heading ADDRESSES above.

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires that Federal agencies use technical 
standards that are developed or adopted by voluntary consensus 
standards bodies unless using these standards is inconsistent with 
applicable law or is otherwise impractical. In this rule, the NRC is 
proposing to amend the licensing, inspection, and annual fees charged 
to its licensees and applicants as necessary to recover approximately 
90 percent of its budget authority in FY 2007 as required by the 
Omnibus Budget Reconciliation Act of 1990, as amended. This action does 
not constitute the establishment of a standard that contains generally 
applicable requirements.

V. Environmental Impact: Categorical Exclusion

    The NRC has determined that this proposed rule is the type of 
action described in categorical exclusion 10 CFR 51.22(c)(1). 
Therefore, neither an environmental assessment nor an environmental 
impact statement has been prepared for the proposed regulation. By its 
very nature, this regulatory action does not affect the environment 
and, therefore, no environmental justice issues are raised.

VI. Paperwork Reduction Act Statement

    This proposed rule does not contain information collection 
requirements and, therefore, is not subject to the requirements of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

    With respect to 10 CFR part 170, this proposed rule was developed 
under Title V of the Independent Offices Appropriation Act of 1952 
(IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in National Cable 
Television Association, Inc. v. United States, 415 U.S. 36 (1974) and 
Federal Power Commission v. New England Power Company, 415 U.S. 345 
(1974). In these decisions, the Court held that the IOAA authorizes an 
agency to charge fees for special benefits rendered to identifiable 
persons measured by the ``value to the recipient'' of the agency 
service. The meaning of the IOAA was further clarified on December 16, 
1976, by four decisions of the U.S. Court of Appeals for the District 
of Columbia: National Cable Television Association v. Federal 
Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); National 
Association of Broadcasters v. Federal Communications Commission, 554 
F.2d 1118 (D.C. Cir. 1976); Electronic Industries Association v. 
Federal Communications Commission, 554 F.2d 1109 (D.C. Cir. 1976); and 
Capital Cities Communication, Inc. v. Federal Communications 
Commission, 554 F.2d 1135 (D.C. Cir. 1976). The Commission's fee 
guidelines were developed based on these legal decisions.
    The Commission's fee guidelines were upheld on August 24, 1979, by 
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power 
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th 
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). This court held that--
    (1) The NRC had the authority to recover the full cost of providing 
services to identifiable beneficiaries;
    (2) The NRC could properly assess a fee for the costs of providing 
routine inspections necessary to ensure a licensee's compliance with 
the Atomic Energy Act of 1954 and with applicable regulations;
    (3) The NRC could charge for costs incurred in conducting 
environmental reviews required by the National Environmental Policy 
Act;
    (4) The NRC properly included the costs of uncontested hearings and 
of administrative and technical support services in the fee schedule;
    (5) The NRC could assess a fee for renewing a license to operate a 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR part 171, OBRA-90, as amended, required that 
the NRC recover approximately 100 percent of its budget authority, less 
the amounts appropriated for the NWF, by assessing fees. To address 
fairness and equity concerns related to charging NRC license holders 
for costs that do not provide a direct benefit to the licensee, OBRA-90 
was amended to reduce the NRC's required fee recovery each year 
beginning in FY 2001 until the required fee recovery was 90 percent. 
The 90 percent requirement became permanent under the Energy Policy Act 
of 2005. As a result, the NRC is required to recover approximately 90 
percent of its FY 2007 budget authority (less the amounts appropriated 
from the NWF, and for WIR and generic homeland security activities) 
through fees. To comply with this statutory requirement and in 
accordance with Sec.  171.13, the NRC is publishing the amount of the 
FY 2007 annual fees for reactor licensees, fuel cycle licensees, 
materials licensees, and holders of Certificates of Compliance, 
registrations of sealed source and devices, and Government agencies.

[[Page 5125]]

OBRA-90, consistent with the accompanying Conference Committee Report, 
and the amendments to OBRA-90, provides that--
    (1) The annual fees be based on approximately 90 percent of the 
Commission's FY 2007 budget of $816.6 million less the funds directly 
appropriated from the NWF to cover the NRC's high-level waste program, 
and for WIR and generic homeland security activities, and less the 
amount of funds collected from part 170 fees;
    (2) The annual fees shall, to the maximum extent practicable, have 
a reasonable relationship to the cost of regulatory services provided 
by the Commission; and
    (3) The annual fees be assessed to those licensees the Commission, 
in its discretion, determines can fairly, equitably, and practicably 
contribute to their payment.
    10 CFR part 171, which established annual fees for operating power 
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986), 
was challenged and upheld in its entirety in Florida Power and Light 
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied, 
490 U.S. 1045 (1989). Further, the NRC's FY 1991 annual fee rule 
methodology was upheld by the D.C. Circuit Court of Appeals in Allied 
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).

VIII. Regulatory Flexibility Analysis

    The NRC is required by the OBRA-90, as amended, to recover 
approximately 90 percent of its FY 2007 budget authority through the 
assessment of user fees. OBRA-90 further requires that the NRC 
establish a schedule of charges that fairly and equitably allocates the 
aggregate amount of these charges among licensees.
    This proposed rule would establish the schedule of fees that are 
necessary to implement the Congressional mandate for FY 2007. This rule 
would result in increases in the annual fees charged to certain 
licensees and holders of certificates, registrations, and approvals, 
and decreases in annual fees for others. Licensees affected by the 
annual fee increases and decreases include those that qualify as a 
small entity under NRC's size standards in 10 CFR 2.810. A draft 
Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C. 
604, is included as Appendix A to this proposed rule.
    The Small Business Regulatory Enforcement Fairness Act of 1996 
requires all Federal agencies to prepare a written compliance guide for 
each rule for which the agency is required by 5 U.S.C. 604 to prepare a 
regulatory flexibility analysis. Therefore, in compliance with the law, 
Attachment 1 to the Regulatory Flexibility Analysis is the small entity 
compliance guide for FY 2007.

IX. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule and that a backfit analysis is 
therefore not required. The backfit analysis is not required because 
the proposed amendments do not require the modification of, or 
additions to systems, structures, components, or the design of a 
facility, or the design approval or manufacturing license for a 
facility, or the procedures or organization required to design, 
construct, or operate a facility.

List of Subjects

10 CFR Part 170

    Byproduct material, Import and export licenses, Intergovernmental 
relations, Non-payment penalties, Nuclear materials, Nuclear power 
plants and reactors, Source material, Special nuclear material.

10 CFR Part 171

    Annual charges, Byproduct material, Holders of certificates, 
registrations, approvals, Intergovernmental relations, Non-payment 
penalties, Nuclear materials, Nuclear power plants and reactors, Source 
material, Special nuclear material.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; and 5 U.S.C. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR parts 170 and 171.

PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT 
LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT 
OF 1954, AS AMENDED

    1. The authority citation for part 170 continues to read as 
follows:

    Authority: Sec. 9701, Pub. L. 97-258, 96 Stat. 1051 (31 U.S.C. 
9701); sec. 301, Pub. L. 92-314, 86 Stat. 227 (42 U.S.C. 2201w); 
sec. 201, Pub. L. 93-438, 88 Stat. 1242, as amended (42 U.S.C. 
5841); sec. 205a, Pub. L. 101-576, 104 Stat. 2842, as amended (31 
U.S.C. 901, 902); sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 note), 
sec. 623, Pub. L. 109-58, 119 Stat. 783 (42 U.S.C. 2201(w)).

    2. In Sec.  170.3, the definitions of Advanced reactor, Indian 
organization, and Indian tribe are removed, and the definition of 
Special projects is revised as follows:


Sec.  170.3  Definitions.

* * * * *
    Special projects means any specific service provided by the 
Commission for which fees are not otherwise specified in this chapter. 
This includes, but is not limited to, contested hearings on licensing 
actions directly related to U.S. Government national security 
initiatives (as determined by the NRC), topical report reviews, early 
site reviews, waste solidification activities, activities related to 
the tracking and monitoring of shipment of classified matter, services 
provided to certify licensee, vendor, or other private industry 
personnel as instructors for 10 CFR part 55 reactor operators, reviews 
of financial assurance submittals that do not require a license 
amendment, reviews of responses to Confirmatory Action Letters, reviews 
of uranium recovery licensees' land-use survey reports, and reviews of 
10 CFR 50.71 final safety analysis reports. Special projects does not 
include activities otherwise exempt from fees under this part. It also 
does not include those contested hearings for which a fee exemption is 
granted in Sec.  170.11(a)(2), including those related to individual 
plant security modifications.
* * * * *
    3. In Sec.  170.12, paragraphs (d)(1) and (d)(2) are revised as 
follows:


Sec.  170.12  Payment of Fees.

* * * * *
    (d) * * *
    (1) All special projects performed by the Commission, unless 
otherwise exempt from fees or for which fees are otherwise specified in 
this part, will be assessed fees to recover the full cost of the 
service provided. Special projects means any specific service provided 
by the Commission, including but not limited to--
    (i) Topical reports;
    (ii) Financial assurance submittals that do not require a license 
amendment;
    (iii) Responses to Confirmatory Action Letters;
    (iv) Uranium recovery licensees' land-use survey reports;
    (v) 10 CFR 50.71 final safety analysis reports; and
    (vi) Contested hearings on licensing actions directly involving 
U.S. Government national security initiatives, as determined by the 
NRC.
    (2) The NRC intends to bill each applicant or licensee at quarterly 
intervals until the special project is completed. Each bill will 
identify the

[[Page 5126]]

special project, including any documents submitted for review or the 
specific contested hearing, and the related costs. The fees are payable 
upon notification by the Commission.
* * * * *
    4. Section 170.20 is revised to read as follows:


Sec.  170.20  Average cost per professional staff-hour.

    Fees for permits, licenses, amendments, renewals, special projects, 
10 CFR part 55 re-qualification and replacement examinations and tests, 
other required reviews, approvals, and inspections under Sec. Sec.  
170.21 and 170.31 will be calculated using the professional staff-hour 
rate of $256 per hour.
    5. In Sec.  170.21, in the table, fee category F is removed and 
reserved, and fee categories A, C, D, G, and K, and footnote 1, are 
revised to read as follows:


Sec.  170.21  Schedule of fees for production and utilization 
facilities, review of standard referenced design approvals, special 
projects, inspections and import and export licenses.

* * * * *

                        Schedule of Facility Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
      Facility categories and type of fees             Fees \1\ \2\
------------------------------------------------------------------------
A. Nuclear Power Reactors:
    Application for Construction Permit........  Full Cost.
    Early Site Permit, Construction Permit,      Full Cost.
     Combined License, Operating License.
    Amendment, Renewal, Dismantling-             Full Cost.
     Decommissioning and Termination, Other
     Approvals.
    Inspections \3\............................  Full Cost.
 
                              * * * * * * *
C. Test Facility/Research Reactor/Critical
 Facility:
    Application for Construction Permit........  Full Cost.
    Construction Permit, Operating License.....  Full Cost.
    Amendment, Renewal, Dismantling-             Full Cost.
     Decommissioning and Termination, Other
     Approvals.
    Inspections \3\............................  Full Cost.
D. Manufacturing License:
    Application for Construction Permit........  Full Cost.
    Preliminary Design Approval, Final Design    Full Cost.
     Approval.
    Amendment, Renewal, Other Approvals........  Full Cost.
    Inspections \3\............................  Full Cost.
 
                              * * * * * * *
F. [Reserved]
G. Other Production and Utilization Facility:
    Application for Construction Permit........  Full Cost.
    Construction Permit, Operating License.....  Full Cost.
    Amendment, Renewal, Other Approvals........  Full Cost.
    Inspections \3\............................  Full Cost.
 
                              * * * * * * *
K. Import and export licenses:
    Licenses for the import and export only of
     production and utilization facilities or
     the export only of components for
     production and utilization facilities
     issued under 10 CFR Part 110.
        1. Application for import or export of
         production and utilization facilities
         \4\ (including reactors and other
         facilities) and exports of components
         requiring Commission and Executive
         Branch review, for example, actions
         under 10 CFR 110.40(b).
            Application--new license, or         $16,600.
             amendment; or license exemption
             request.
        2. Application for export of reactor
         and other components requiring
         Executive Branch review only, for
         example, those actions under 10 CFR
         110.41(a)(1)-(8).
            Application--new license, or         $9,700.
             amendment; or license exemption
             request.
        3. Application for export of components
         requiring the assistance of the
         Executive Branch to obtain foreign
         government assurances.
            Application--new license, or         $4,100.
             amendment; or license exemption
             request.
        4. Application for export of facility
         components and equipment (examples
         provided in 10 CFR part 110, Appendix
         A, Items (5) through (9)) not
         requiring Commission or Executive
         Branch review, or obtaining foreign
         government assurances.
            Application--new license, or         $2,600.
             amendment; or license exemption
             request.
        5. Minor amendment of any active export
         or import license, for example, to
         extend the expiration date, change
         domestic information, or make other
         revisions which do not involve any
         substantive changes to license terms
         or conditions or to the type of
         facility or component authorized for
         export and therefore, do not require
         in-depth analysis or review or
         consultation with the Executive
         Branch, U.S. host state, or foreign
         government authorities.
            Minor amendment to license.........  $770.
------------------------------------------------------------------------
\1\ Fees will not be charged for orders related to civil penalties or
  other civil sanctions issued by the Commission under Sec.   2.202 of
  this chapter or for amendments resulting specifically from the
  requirements of these orders. For orders unrelated to civil penalties
  or other civil sanctions, fees will be charged for any resulting
  licensee-specific activities not otherwise exempted from fees under
  this chapter. Fees will be charged for approvals issued under a
  specific exemption provision of the Commission's regulations under
  Title 10 of the Code of Federal Regulations (e.g., 10 CFR 50.12, 73.5)
  and any other sections in effect now or in the future, regardless of
  whether the approval is in the form of a license amendment, letter of
  approval, safety evaluation report, or other form.

[[Page 5127]]

 
\2\ Full cost fees will be determined based on the professional staff
  time and appropriate contractual support services expended. For
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect
  at the time the service was provided. For those applications currently
  on file for which review costs have reached an applicable fee ceiling
  established by the June 20, 1984, and July 2, 1990, rules, but are
  still pending completion of the review, the cost incurred after any
  applicable ceiling was reached through January 29, 1989, will not be
  billed to the applicant. Any professional staff-hours expended above
  those ceilings on or after January 30, 1989, will be assessed at the
  applicable rates established by Sec.   170.20, as appropriate, except
  for topical reports whose costs exceed $50,000. Costs which exceed
  $50,000 for any topical report, amendment, revision or supplement to a
  topical report completed or under review from January 30, 1989,
  through August 8, 1991, will not be billed to the applicant. Any
  professional hours expended on or after August 9, 1991, will be
  assessed at the applicable rate established in Sec.   170.20.
\3\ Inspections covered by this schedule are both routine and non-
  routine safety and safeguards inspections performed by NRC for the
  purpose of review or follow-up of a licensed program. Inspections are
  performed through the full term of the license to ensure that the
  authorized activities are being conducted in accordance with the
  Atomic Energy Act of 1954, as amended, other legislation, Commission
  regulations or orders, and the terms and conditions of the license.
  Non-routine inspections that result from third-party allegations will
  not be subject to fees.
\4\ Imports only of major components for end-use at NRC-licensed
  reactors are now authorized under NRC general import license.

    6. In Sec.  170.31, the table and footnotes 1(b) and 1(c) are 
revised to read as follows:


Sec.  170.31  Schedule of fees for materials licenses and other 
regulatory services, including inspections, and import and export 
licenses.

* * * * *

                       Schedule of Materials Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees
                      \1\                                Fee 2 3
------------------------------------------------------------------------
1. Special nuclear material:
    A.(1) Licenses for possession and use of U-
     235 or plutonium for fuel fabrication
     activities:
        (a) Strategic Special Nuclear Material   Full Cost.
         (High Enriched Uranium).
        (b) Low Enriched Uranium in Dispersible  Full Cost.
         Form Used for Fabrication of Power
         Reactor Fuel.
    (2) All other special nuclear materials
     licenses not included in Category 1.A.(1)
     which are licensed for fuel cycle
     activities:
        (a) Facilities with limited operations.  Full Cost.
        (b) Gas centrifuge enrichment            Full Cost.
         demonstration facilities.
        (c) Others, including hot cell           Full Cost.
         facilities.
    B. Licenses for receipt and storage of       Full Cost.
     spent fuel and reactor-related Greater
     than Class C (GTCC) waste at an
     independent spent fuel storage
     installation (ISFSI).
    C. Licenses for possession and use of
     special nuclear material in sealed sources
     contained in devices used in industrial
     measuring systems, including x-ray
     fluorescence analyzers: \4\
        Application............................  $1,200.
    D. All other special nuclear material
     licenses, except licenses authorizing
     special nuclear material in unsealed form
     in combination that would constitute a
     critical quantity, as defined in Sec.
     150.11 of this chapter, for which the
     licensee shall pay the same fees as those
     under Category 1.A: \4\
        Application............................  $2,400.
    E. Licenses or certificates for              Full Cost.
     construction and operation of a uranium
     enrichment facility.
2. Source material:
    A.(1) Licenses for possession and use of     Full Cost.
     source material for refining uranium mill
     concentrates to uranium hexafluoride.
    (2) Licenses for possession and use of
     source material in recovery operations
     such as milling, in-situ leaching, heap-
     leaching, ore buying stations, ion
     exchange facilities and in processing of
     ores containing source material for
     extraction of metals other than uranium or
     thorium, including licenses authorizing
     the possession of byproduct waste material
     (tailings) from source material recovery
     operations, as well as licenses
     authorizing the possession and maintenance
     of a facility in a standby mode:
        (a) Class I facilities.................  Full Cost.
        (b) Class II facilities................  Full Cost.
        (c) Other facilities...................  Full Cost.
    (3) Licenses that authorize the receipt of   Full Cost.
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from
     other persons for possession and disposal,
     except those licenses subject to the fees
     in Category 2.A.(2) or Category 2.A.(4).
    (4) Licenses that authorize the receipt of   Full Cost.
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from
     other persons for possession and disposal
     incidental to the disposal of the uranium
     waste tailings generated by the licensee's
     milling operations, except those licenses
     subject to the fees in Category 2.A.(2).
    (5) Licenses that authorize the possession   Full Cost.
     of source material related to removal of
     contaminants (source material) from
     drinking water.
    B. Licenses which authorize the possession,
     use, and/or installation of source
     material for shielding:
        Application............................  $280.
    C. All other source material licenses:
        Application............................  $10,000.
3. Byproduct material:
    A. Licenses of broad scope for the
     possession and use of byproduct material
     issued under parts 30 and 33 of this
     chapter for processing or manufacturing of
     items containing byproduct material for
     commercial distribution:
        Application............................  $12,000.
    B. Other licenses for possession and use of
     byproduct material issued under part 30 of
     this chapter for processing or
     manufacturing of items containing
     byproduct material for commercial
     distribution:
        Application............................  $4,500.

[[Page 5128]]

 
    C. Licenses issued under Sec.  Sec.   32.72
     and/or 32.74 of this chapter that
     authorize the processing or manufacturing
     and distribution or redistribution of
     radiopharmaceuticals, generators, reagent
     kits, and/or sources and devices
     containing byproduct material. This
     category does not apply to licenses issued
     to nonprofit educational institutions
     whose processing or manufacturing is
     exempt under Sec.   170.11(a)(4). These
     licenses are covered by fee Category 3.D:
        Application............................  $8,000.
    D. Licenses and approvals issued under Sec.
      Sec.   32.72 and/or 32.74 of this chapter
     authorizing distribution or redistribution
     of radiopharmaceuticals, generators,
     reagent kits, and/or sources or devices
     not involving processing of byproduct
     material. This category includes licenses
     issued under Sec.  Sec.   32.72 and/or
     32.74 of this chapter to nonprofit
     educational institutions whose processing
     or manufacturing is exempt under Sec.
     170.11(a)(4):
        Application............................  $4,300.
    E. Licenses for possession and use of
     byproduct material in sealed sources for
     irradiation of materials in which the
     source is not removed from its shield
     (self-shielded units):
        Application............................  $2,900.
    F. Licenses for possession and use of less
     than 10,000 curies of byproduct material
     in sealed sources for irradiation of
     materials in which the source is exposed
     for irradiation purposes. This category
     also includes underwater irradiators for
     irradiation of materials where the source
     is not exposed for irradiation purposes.
        Application............................  $6,000.
    G. Licenses for possession and use of
     10,000 curies or more of byproduct
     material in sealed sources for irradiation
     of materials in which the source is
     exposed for irradiation purposes. This
     category also includes underwater
     irradiators for irradiation of materials
     where the source is not exposed for
     irradiation purposes:
        Application............................  $14,300.
    H. Licenses issued under Subpart A of part
     32 of this chapter to distribute items
     containing byproduct material that require
     device review to persons exempt from the
     licensing requirements of part 30 of this
     chapter. The category does not include
     specific licenses authorizing
     redistribution of items that have been
     authorized for distribution to persons
     exempt from the licensing requirements of
     part 30 of this chapter:
        Application............................  $10,500.
    I. Licenses issued under Subpart A of part
     32 of this chapter to distribute items
     containing byproduct material or
     quantities of byproduct material that do
     not require device evaluation to persons
     exempt from the licensing requirements of
     part 30 of this chapter. This category
     does not include specific licenses
     authorizing redistribution of items that
     have been authorized for distribution to
     persons exempt from the licensing
     requirements of part 30 of this chapter:
        Application............................  $10,400.
    J. Licenses issued under Subpart B of part
     32 of this chapter to distribute items
     containing byproduct material that require
     sealed source and/or device review to
     persons generally licensed under part 31
     of this chapter. This category does not
     include specific licenses authorizing
     redistribution of items that have been
     authorized for distribution to persons
     generally licensed under part 31 of this
     chapter:
        Application............................  $1,800.
    K. Licenses issued under Subpart B of part
     32 of this chapter to distribute items
     containing byproduct material or
     quantities of byproduct material that do
     not require sealed source and/or device
     review to persons generally licensed under
     part 31 of this chapter. This category
     does not include specific licenses
     authorizing redistribution of items that
     have been authorized for distribution to
     persons generally licensed under part 31
     of this chapter:
        Application............................  $1,000.
    L. Licenses of broad scope for possession
     and use of byproduct material issued under
     parts 30 and 33 of this chapter for
     research and development that do not
     authorize commercial distribution:
        Application............................  $10,000.
    M. Other licenses for possession and use of
     byproduct material issued under part 30 of
     this chapter for research and development
     that do not authorize commercial
     distribution:
        Application............................  $3,600.
    N. Licenses that authorize services for
     other licensees, except:
        (1) Licenses that authorize only
         calibration and/or leak testing
         services are subject to the fees
         specified in fee Category 3P; and
        (2) Licenses that authorize waste
         disposal services are subject to the
         fees specified in fee Categories 4.A.,
         4.B., and 4.C:
        Application............................  $6,500.
    O. Licenses for possession and use of
     byproduct material issued under part 34 of
     this chapter for industrial radiography
     operations:
        Application............................  $4,900.
    P. All other specific byproduct material
     licenses, except those in Categories 4.A.
     through 9.D:
        Application............................  $1,400.
    Q. Registration of a device(s) generally
     licensed under part 31 of this chapter:
        Registration...........................  $320.
4. Waste disposal and processing:
    A. Licenses specifically authorizing the     Full Cost.
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of contingency storage or
     commercial land disposal by the licensee;
     or licenses authorizing contingency
     storage of low-level radioactive waste at
     the site of nuclear power reactors; or
     licenses for receipt of waste from other
     persons for incineration or other
     treatment, packaging of resulting waste
     and residues, and transfer of packages to
     another person authorized to receive or
     dispose of waste material.
    B. Licenses specifically authorizing the
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of packaging or repackaging the
     material. The licensee will dispose of the
     material by transfer to another person
     authorized to receive or dispose of the
     material:
        Application............................  $3,100.

[[Page 5129]]

 
    C. Licenses specifically authorizing the
     receipt of prepackaged waste byproduct
     material, source material, or special
     nuclear material from other persons. The
     licensee will dispose of the material by
     transfer to another person authorized to
     receive or dispose of the material:
        Application............................  $4,600.
5. Well logging:
    A. Licenses for possession and use of
     byproduct material, source material, and/
     or special nuclear material for well
     logging, well surveys, and tracer studies
     other than field flooding tracer studies:
        Application............................  $1,700.
    B. Licenses for possession and use of
     byproduct material for field flooding
     tracer studies:
        Licensing..............................  Full Cost.
6. Nuclear laundries:
    A. Licenses for commercial collection and
     laundry of items contaminated with
     byproduct material, source material, or
     special nuclear material:
        Application............................  $20,400.
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40,
     and 70 of this chapter for human use of
     byproduct material, source material, or
     special nuclear material in sealed sources
     contained in teletherapy devices:
        Application............................  $11,200.
    B. Licenses of broad scope issued to
     medical institutions or two or more
     physicians under parts 30, 33, 35, 40, and
     70 of this chapter authorizing research
     and development, including human use of
     byproduct material, except licenses for
     byproduct material, source material, or
     special nuclear material in sealed sources
     contained in teletherapy devices. This
     category also includes the possession and
     use of source material for shielding when
     authorized on the same license:
        Application............................  $8,000.
    C. Other licenses issued under parts 30,
     35, 40, and 70 of this chapter for human
     use of byproduct material, source
     material, and/or special nuclear material,
     except licenses for byproduct material,
     source material, or special nuclear
     material in sealed sources contained in
     teletherapy device:
        Application............................  $2,400.
8. Civil defense:
    A. Licenses for possession and use of
     byproduct material, source material, or
     special nuclear material for civil defense
     activities:
        Application............................  $590.
9. Device, product, or sealed source safety
 evaluation:
    A. Safety evaluation of devices or products
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel devices, for
     commercial distribution:
        Application--each device...............  $20,900.
    B. Safety evaluation of devices or products
     containing byproduct material, source
     material, or special nuclear material
     manufactured in accordance with the unique
     specifications of, and for use by, a
     single applicant, except reactor fuel
     devices:
        Application--each device...............  $20,900.
    C. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel, for commercial
     distribution:
        Application--each source...............  $2,900.
    D. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     manufactured in accordance with the unique
     specifications of, and for use by, a
     single applicant, except reactor fuel:..
        Application--each source...............  $970.
10. Transportation of radioactive material:
    A. Evaluation of casks, packages, and
     shipping containers:
        1. Spent Fuel, High-Level Waste, and     Full Cost.
         plutonium air packages.
        2. Other Casks.........................  Full Cost.
    B. Quality assurance program approvals
     issued under part 71 of this chapter:
        1. Users and Fabricators:
            Application........................  $4,800.
            Inspections........................  Full Cost.
        2. Users:
            Application........................  $4,800.
            Inspections........................  Full Cost.
    C. Evaluation of security plans, route       Full Cost.
     approvals, route surveys, and
     transportation security devices (including
     immobilization devices).
11. Review of standardized spent fuel            Full Cost.
 facilities.
12. Special projects:
    Including approvals, preapplication/         Full Cost.
     licensing activities, and inspections.
13.A. Spent fuel storage cask Certificate of     Full Cost.
 Compliance.
B. Inspections related to storage of spent fuel  Full Cost.
 under Sec.   72.210 of this chapter.
14.A. Byproduct, source, or special nuclear      Full Cost.
 material licenses and other approvals
 authorizing decommissioning, decontamination,
 reclamation, or site restoration activities
 under parts 30, 40, 70, 72, and 76 of this
 chapter.
B. Site-specific decommissioning activities      Full Cost.
 associated with unlicensed sites, regardless
 of whether or not the sites have been
 previously licensed. Part 170 fees for these
 activities will not be charged until July 25,
 2006.
15. Import and Export licenses:
    Licenses issued under part 110 of this
     chapter for the import and export only of
     special nuclear material, source material,
     tritium and other byproduct material, and
     the export only of heavy water, or nuclear
     grade graphite (fee categories 15.A.
     through 15.E):

[[Page 5130]]

 
        A. Application for export or import of
         nuclear materials, including
         radioactive waste requiring Commission
         and Executive Branch review, for
         example, those actions under 10 CFR
         110.40(b):
            Application--new license, or         $16,600.
             amendment; or license exemption
             request.
        B. Application for export or import of
         nuclear material, including
         radioactive waste, requiring Executive
         Branch review, but not Commission
         review. This category includes
         applications for the export and import
         of radioactive waste and requires NRC
         to consult with domestic host state
         authorities, Low-Level Radioactive
         Waste Compact Commission, the U.S.
         Environmental Protection Agency, etc:
            Application--new license, or         $9,700.
             amendment; or license exemption
             request.
        C. Application for export of nuclear
         material, for example, routine reloads
         of low enriched uranium reactor fuel
         and/or natural uranium source material
         requiring the assistance of the
         Executive Branch to obtain foreign
         government assurances:
            Application--new license, or         $4,100.
             amendment; or license exemption
             request.
        D. Application for export or import of
         nuclear material, including
         radioactive waste, not requiring
         Commission or Executive Branch review,
         or obtaining foreign government
         assurances. This category includes
         applications for export or import of
         radioactive waste where the NRC has
         previously authorized the export or
         import of the same form of waste to or
         from the same or similar parties
         located in the same country, requiring
         only confirmation from the receiving
         facility and licensing authorities
         that the shipments may proceed
         according to previously agreed
         understandings and procedures:
            Application--new license, or         $2,600.
             amendment; or license exemption
             request.
        E. Minor amendment of any active export
         or import license, for example, to
         extend the expiration date, change
         domestic information, or make other
         revisions which do not involve any
         substantive changes to license terms
         and conditions or to the type/quantity/
         chemical composition of the material
         authorized for export and therefore,
         do not require in-depth analysis,
         review, or consultations with other
         Executive Branch, U.S. host state, or
         foreign government authorities.
            Minor amendment....................  $770.
    Licenses issued under part 110 of this
     chapter for the import and export only of
     Category 1 and Category 2 quantities of
     radioactive material listed in Appendix P
     to part 110 of this chapter (fee
     categories 15.F. through 15.R.).\6\.
        Category 1 Exports
        F. Application for export of Category 1
         materials involving an exceptional
         circumstances review under 10 CFR
         110.42(e)(4):
            Application--new license, or         $16,600.
             amendment; or license exemption
             request.
        G. Application for export of Category 1
         materials requiring Executive Branch
         review, Commission review, and/or
         government-to-government consent:
            Application--new license, or         $9,700.
             amendment; or license exemption
             request.
        H. Application for export of Category 1
         materials requiring Commission review
         and government-to-government consent:
            Application--new license, or         $6,100.
             amendment; or license exemption
             request.
        I. Application for export of Category 1
         material requiring government-to-
         government consent:
            Application--new license, or         $5,100.
             amendment; or license exemption
             request.
        Category 2 Exports
        J. Application for export of Category 2
         materials involving an exceptional
         circumstances review under 10 CFR
         110.42(e)(4):
            Application--new license, or         $16,600.
             amendment; or license exemption
             request.
        K. Applications for export of Category
         2 materials requiring Executive Branch
         review and/or Commission review:
            Application--new license, or         $9,700.
             amendment; or license exemption
             request.
        L. Application for the export of
         Category 2 materials:
            Application--new license, or         $4,600.
             amendment; or license exemption
             request.
        Category 1 Imports
        M. Application for the import of
         Category 1 material requiring
         Commission review:
            Application--new license, or         $4,900.
             amendment; or license exemption
             request.
        N. Application for the import of
         Category 1 material:
            Application--new license, or         $4,100.
             amendment; or license exemption
             request.
        Category 2 Imports
        O. Application for the import of
         Category 2 material:
            Application--new license, or         $3,600.
             amendment; or license exemption
             request.
        Category 1 Imports with Agent and
         Multiple Licensees.
        P. Application for the import of
         Category 1 material with agent and
         multiple licensees requiring
         Commission review:
            Application--new license, or         $5,600.
             amendment; or license exemption
             request.
        Q. Application for the import of
         Category 1 material with agent and
         multiple licensees:
            Application--new license, or         $4,600.
             amendment; or license exemption
             request.
        Minor Amendments (Category 1 and 2
         Export and Imports)
        R. Minor amendment of any active export
         or import license, for example, to
         extend the expiration date, change
         domestic information, or make other
         revisions which do not involve any
         substantive changes to license terms
         and conditions or to the type/quantity/
         chemical composition of the material
         authorized for export and therefore,
         do not require in-depth analysis,
         review, or consultations with other
         Executive Branch, U.S. host state, or
         foreign authorities.
            Minor amendment....................  $770.
16. Reciprocity:
    Agreement State licensees who conduct
     activities under the reciprocity
     provisions of 10 CFR 150.20:
        Application............................  $1,500.
17. Master materials licenses of broad scope
 issued to Government agencies:
        Application............................  $23,600.
8. Department of Energy:

[[Page 5131]]

 
    A. Certificates of Compliance. Evaluation    Full Cost.
     of casks, packages, and shipping
     containers (including spent fuel, high-
     level waste, and other casks, and
     plutonium air packages).
    B. Uranium Mill Tailings Radiation Control   Full Cost.
     Act (UMTRCA) activities.
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
  assessed for pre-application consultations and reviews; applications
  for new licenses, approvals, or license terminations; possession only
  licenses; issuance of new licenses and approvals; certain amendments
  and renewals to existing licenses and approvals; safety evaluations of
  sealed sources and devices; generally licensed device registrations;
  and certain inspections. The following guidelines apply to these
  charges:
 (a) Application and registration fees. Applications for new materials
  licenses and export and import licenses; applications to reinstate
  expired, terminated, or inactive licenses except those subject to fees
  assessed at full costs; applications filed by Agreement State
  licensees to register under the general license provisions of 10 CFR
  150.20; and applications for amendments to materials licenses that
  would place the license in a higher fee category or add a new fee
  category must be accompanied by the prescribed application fee for
  each category.
 (1) Applications for licenses covering more than one fee category of
  special nuclear material or source material must be accompanied by the
  prescribed application fee for the highest fee category.
 (2) Applications for new licenses that cover both byproduct material
  and special nuclear material in sealed sources for use in gauging
  devices will pay the appropriate application fee for fee Category 1.C.
  only.
 (b) Licensing fees. Fees for reviews of applications for new licenses
  and for renewals and amendments to existing licenses, pre-application
  consultations and reviews of other documents submitted to NRC for
  review, and project manager time for fee categories subject to full
  cost fees, are due upon notification by the Commission in accordance
  with Sec.   170.12(b).
 (c) Amendment fees. Applications for amendments to export and import
  licenses must be accompanied by the prescribed amendment fee for each
  license affected. An application for an amendment to an export or
  import license or approval classified in more than one fee category
  must be accompanied by the prescribed amendment fee for the category
  affected by the amendment unless the amendment is applicable to two or
  more fee categories, in which case the amendment fee for the highest
  fee category would apply.
 (d) Inspection fees. Inspections resulting from investigations
  conducted by the Office of Investigations and non-routine inspections
  that result from third-party allegations are not subject to fees.
  Inspection fees are due upon notification by the Commission in
  accordance with Sec.   170.12(c).
 (e) Generally licensed device registrations under 10 CFR 31.5.
  Submittals of registration information must be accompanied by the
  prescribed fee.
\2\ Fees will not be charged for orders related to civil penalties or
  other civil sanctions issued by the Commission under 10 CFR 2.202 or
  for amendments resulting specifically from the requirements of these
  orders. For orders unrelated to civil penalties or other civil
  sanctions, fees will be charged for any resulting licensee-specific
  activities not otherwise exempted from fees under this chapter. Fees
  will be charged for approvals issued under a specific exemption
  provision of the Commission's regulations under Title 10 of the Code
  of Federal Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and
  any other sections in effect now or in the future), regardless of
  whether the approval is in the form of a license amendment, letter of
  approval, safety evaluation report, or other form. In addition to the
  fee shown, an applicant may be assessed an additional fee for sealed
  source and device evaluations as shown in Categories 9.A. through 9.D.
\3\ Full cost fees will be determined based on the professional staff
  time multiplied by the appropriate professional hourly rate
  established in Sec.   170.20 in effect at the time the service is
  provided, and the appropriate contractual support services expended.
  For applications currently on file for which review costs have reached
  an applicable fee ceiling established by the June 20, 1984, and July
  2, 1990, rules, but are still pending completion of the review, the
  cost incurred after any applicable ceiling was reached through January
  29, 1989, will not be billed to the applicant. Any professional staff-
  hours expended above those ceilings on or after January 30, 1989, will
  be assessed at the applicable rates established by Sec.   170.20, as
  appropriate, except for topical reports whose costs exceed $50,000.
  Costs which exceed $50,000 for each topical report, amendment,
  revision, or supplement to a topical report completed or under review
  from January 30, 1989, through August 8, 1991, will not be billed to
  the applicant. Any professional hours expended on or after August 9,
  1991, will be assessed at the applicable rate established in Sec.
  170.20.
\4\ Licensees paying fees under Categories 1.A., 1.B., and 1.E. are not
  subject to fees under Categories 1.C. and 1.D. for sealed sources
  authorized in the same license except for an application that deals
  only with the sealed sources authorized by the license.
\5\ For a combined import and export license application for material
  listed in Appendix P to part 110 of this chapter, only the higher of
  the two applicable fee amounts must be paid.

PART 171--ANNUAL FEES FOR REACTOR LICENSES AND FUEL CYCLE LICENSES 
AND MATERIALS LICENSES, INCLUDING HOLDERS OF CERTIFICATES OF 
COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE PROGRAM APPROVALS 
AND GOVERNMENT AGENCIES LICENSED BY THE NRC

    7. The authority citation for part 171 continues to read as 
follows:

    Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended 
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by sec. 
3201, Pub. L. 101-239, 103 Stat. 2132, as amended by sec. 6101, Pub. 
L. 101-508, 104 Stat. 1388, as amended by sec. 2903a, Pub. L. 102-
486, 106 Stat. 3125 (42 U.S.C. 2213, 2214), and as amended by Title 
IV, Pub. L. 109-103, 119 Stat. 2283 (42 U.S.C. 2214); sec. 301, Pub. 
L. 92-314, 86 Stat. 227 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-438, 
88 Stat. 1242, as amended (42 U.S.C. 5841); sec. 1704, 112 Stat. 
2750 (44 U.S.C. 3504 note).

    8. Section 171.3 is revised to read as follows:


Sec.  171.3  Scope.

    The regulations in this part apply to any person holding an 
operating license for a power reactor, test reactor or research reactor 
issued under part 50 of this chapter and to any person holding a 
combined license issued under part 52 of this chapter that authorizes 
operation of a power reactor. The regulations in this part also apply 
to any person holding a materials license as defined in this part, a 
Certificate of Compliance, a sealed source or device registration, a 
quality assurance program approval, and to a Government agency as 
defined in this part. Notwithstanding the other provisions in this 
section, the regulations in this part do not apply to uranium 
enrichment facilities until after the Commission verifies through 
inspection that the facility has been constructed in accordance with 
the requirements of the license, as required in 10 CFR parts 40 and 70.
    9. Section 171.15 is revised to read as follows:


Sec.  171.15  Annual fees: Reactor licenses and independent spent fuel 
storage licenses.

    (a) Each person holding an operating license for a power, test, or 
research reactor; each person holding a 10 CFR part 50 or part 52 power 
reactor license that is in decommissioning or possession only status, 
except those that have not spent fuel onsite; and each person holding a 
10 CFR part 72 license who does not hold a 10 CFR part 50 or part 52 
license shall pay the annual fee for each license held at any time 
during the Federal fiscal year (FY) in which the fee is due. This 
paragraph does not apply to test and research reactors exempted under 
Sec.  171.11(a).

[[Page 5132]]

    (b)(1) The FY 2007 annual fee for each operating power reactor 
which must be collected by September 30, 2007, is $4,088,000.
    (2) The FY 2007 annual fee is comprised of a base annual fee for 
power reactors licensed to operate, a base spent fuel storage/reactor 
decommissioning annual fee, and associated additional charges 
(surcharges). The activities comprising the FY 2007 spent storage/
reactor decommissioning base annual fee are shown in paragraphs 
(c)(2)(i) and (ii) of this section. The activities comprising the FY 
2007 surcharge are shown in paragraph (d)(1) of this section. The 
activities comprising the FY 2007 base annual fee for operating power 
reactors are as follows:
    (i) Power reactor safety and safeguards regulation except licensing 
and inspection activities recovered under part 170 of this chapter and 
generic reactor decommissioning activities.
    (ii) Research activities directly related to the regulation of 
power reactors, except those activities specifically related to reactor 
decommissioning.
    (iii) Generic activities required largely for NRC to regulate power 
reactors (e.g., updating part 50 or 52 of this chapter, operating the 
Incident Response Center, new reactor regulatory infrastructure). The 
base annual fee for operating power reactors does not include generic 
activities specifically related to reactor decommissioning.
    (c)(1) The FY 2007 annual fee for each power reactor holding a 10 
CFR part 50 license that is in a decommissioning or possession only 
status and has spent fuel onsite, and each independent spent fuel 
storage 10 CFR part 72 licensee who does not hold a 10 CFR part 50 
license is $150,000.
    (2) The FY 2007 annual fee is comprised of a base spent fuel 
storage/reactor decommissioning annual fee (which is also included in 
the operating power reactor annual fee shown in paragraph (b) of this 
section), and an additional charge (surcharge). The activities 
comprising the FY 2007 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2007 spent fuel storage/
reactor decommissioning rebaselined annual fee are:
    (i) Generic and other research activities directly related to 
reactor decommissioning and spent fuel storage; and
    (ii) Other safety, environmental, and safeguards activities related 
to reactor decommissioning and spent fuel storage, except costs for 
licensing and inspection activities that are recovered under part 170 
of this chapter.
    (d)(1) The surcharge allocated to annual fees includes the budgeted 
resources for the activities listed in paragraph (d)(1)(i) of this 
section, plus the total budgeted resources for the activities included 
in paragraphs (d)(1)(ii) and (d)(1)(iii) of this section as reduced by 
the appropriations NRC receives for these types of activities. If the 
NRC's appropriations for these types of activities are greater than the 
budgeted resources for the activities included in paragraphs (d)(1)(ii) 
and (d)(1)(iii) of this section for a given FY, a negative surcharge 
(or annual fee reduction) will be allocated to annual fees. The 
activities comprising the FY 2007 surcharge are as follows:
    (i) Low-level waste disposal generic activities;
    (ii) Activities not attributable to an existing NRC licensee or 
class of licenses (e.g., international cooperative safety program and 
international safeguards activities, support for the Agreement State 
program); and
    (iii) Activities not currently subject to 10 CFR part 170 licensing 
and inspection fees based on existing law or Commission policy (e.g., 
reviews and inspections conducted of nonprofit educational 
institutions, costs that would not be collected from small entities 
based on Commission policy in accordance with the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., regulatory support for Agreement 
States, generic decommissioning/reclamation activities for fee classes 
other than power reactors and spent fuel storage/reactor 
decommissioning, the in-situ leach rulemaking, activities for 
unregistered general licensees).
    (2) The total FY 2007 surcharge allocated to the operating power 
reactor class of licenses is -$5.8 million, not including the amount 
allocated to the spent fuel storage/reactor decommissioning class. The 
FY 2007 operating power reactor surcharge to be assessed to each 
operating power reactor is approximately -$56,000. This amount is 
calculated by dividing the total operating power reactor surcharge (-
$5.8 million) by the number of operating power reactors (104).
    (3) The FY 2007 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is -$344,000. The FY 2007 
spent fuel storage/reactor decommissioning surcharge to be assessed to 
each operating power reactor, each power reactor in decommissioning or 
possession only status that has spent fuel onsite, and to each 
independent spent fuel storage 10 CFR part 72 licensee who does not 
hold a 10 CFR part 50 license is approximately -$2,800. This amount is 
calculated by dividing the total surcharge costs allocated to this 
class by the total number of power reactor licenses, except those that 
permanently ceased operations and have no fuel onsite, and 10 CFR part 
72 licensees who do not hold a 10 CFR part 50 license.
    (e) The FY 2007 annual fees for licensees authorized to operate a 
test and research (non-power) reactor licensed under part 50 of this 
chapter, unless the reactor is exempted from fees under Sec.  
171.11(a), are as follows:

Research reactor...........................................      $92,300
Test reactor...............................................      92,300.
 

    10. In Sec.  171.16, paragraph (a)(2) is redesignated as paragraph 
(a)(3) and revised, a new paragraph (a)(2) is added, paragraphs (c) and 
(d) are revised, and paragraph (e) is added to read as follows:


Sec.  171.16  Annual fees: Materials licensees, holders of certificates 
of compliance, holders of sealed source and device registrations, 
holders of quality assurance program approvals, and government agencies 
licensed by the NRC.

    (a) * * *
    (2) Notwithstanding the other provisions in this section, the 
regulations in this part do not apply to uranium enrichment facilities 
until after the Commission verifies through inspection that the 
facility has been constructed in accordance with the requirements of 
the license, as required in 10 CFR parts 40 and 70.
    (3) In accordance with Sec.  171.17, each person identified in 
paragraph (a)(1) of this section shall pay the applicable annual fee 
for each license the person holds during the FY. Annual fees will be 
prorated for new licenses issued and for licenses for which termination 
is requested and activities permanently ceased during the FY as 
provided in Sec.  171.17. If a single license authorizes more than one 
activity (e.g., human use and irradiator activities), annual fees will 
be assessed for each fee category applicable to the license. If a 
person holds more than one license, the total annual fee assessed will 
be the cumulative total of the annual fees applicable to each license 
held.
* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides the Commission with the proper certification 
along with its annual fee payment, the licensee may pay reduced annual 
fees as shown in the following table. Failure to file a small entity 
certification in a timely manner could result in the denial of any 
refund that

[[Page 5133]]

might otherwise be due. The small entity fees are as follows:

------------------------------------------------------------------------
                                                         Maximum annual
                                                        fee per licensed
                                                            category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and
 Small Not-For-Profit Organizations (Gross Annual
 Receipts):
    $350,000 to $5 million............................            $2,300
    Less than $350,000................................               500
Manufacturing entities that have an average of 500
 employees or less:
    35 to 500 employees...............................             2,300
    Less than 35 employees............................               500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions) (Population):
    20,000 to 50,000..................................             2,300
    Less than 20,000..................................               500
Educational Institutions that are not State or
 Publicly Supported, and have 500 Employees or Less:
    35 to 500 employees...............................             2,300
    Less than 35 employees............................               500
------------------------------------------------------------------------

    (1) A licensee qualifies as a small entity if it meets the size 
standards established by the NRC (See 10 CFR 2.810).
    (2) A licensee who seeks to establish status as a small entity for 
the purpose of paying the annual fees required under this section must 
file a certification statement with the NRC. The licensee must file the 
required certification on NRC Form 526 for each license under which it 
is billed. NRC Form 526 can be accessed through the NRC's Web site at 
http://www.nrc.gov. For licensees who cannot access the NRC's Web site, 
NRC Form 526 may be obtained through the local point of contact listed 
in the NRC's ``Materials Annual Fee Billing Handbook,'' NUREG/BR-0238, 
which is enclosed with each annual fee billing. The form can also be 
obtained by calling the fee staff at 301-415-7554, or by e-mailing the 
fee staff at [email protected].
    (3) For purposes of this section, the licensee must submit a new 
certification with its annual fee payment each year.
    (4) The maximum annual fee a small entity is required to pay is 
$2,300 for each category applicable to the license(s).
    (d) The FY 2007 annual fees are comprised of a base annual fee and 
an additional charge (surcharge). The activities comprising the FY 2007 
surcharge are shown for convenience in paragraph (e) of this section. 
The FY 2007 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown in the following table:

   Schedule of Materials Annual Fees and Fees for Government Agencies
                             Licensed by NRC
                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                        Annual fees \1\
            Category of materials licenses                  \2\ \3\
------------------------------------------------------------------------
1. Special nuclear material:
    A.(1) Licenses for possession and use of U-235 or
     plutonium for fuel fabrication activities.
        (a) Strategic Special Nuclear Material (High          $4,451,000
         Enriched Uranium)...........................
        (b) Low Enriched Uranium in Dispersible Form           1,345,000
         Used for Fabrication of Power Reactor Fuel..
    (2) All other special nuclear materials licenses
     not included in Category 1.A.(1) which are
     licensed for fuel cycle activities.
        (a) Facilities with limited operations.......            510,000
        (b) Gas centrifuge enrichment demonstration              835,000
         facilities..................................
        (c) Others, including hot cell facilities....            371,000
    B. Licenses for receipt and storage of spent fuel           \11\ N/A
     and reactor-related Greater than Class C (GTCC)
     waste at an independent spent fuel storage
     installation (ISFSI)............................
    C. Licenses for possession and use of special                  2,100
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers..........
    D. All other special nuclear material licenses,                5,700
     except licenses authorizing special nuclear
     material in unsealed form in combination that
     would constitute a critical quantity, as defined
     in Sec.   150.11 of this chapter, for which the
     licensee shall pay the same fees as those for
     Category 1.A.(2)................................
    E. Licenses or certificates for the operation of           2,550,000
     a uranium enrichment facility...................
2. Source material:
    A.(1) Licenses for possession and use of source              881,000
     material for refining uranium mill concentrates
     to uranium hexafluoride.........................
    (2) Licenses for possession and use of source
     material in recovery operations such as milling,
     in-situ leaching, heap-leaching, ore buying
     stations, ion exchange facilities and in-
     processing of ores containing source material
     for extraction of metals other than uranium or
     thorium, including licenses authorizing the
     possession of byproduct waste material
     (tailings) from source material recovery
     operations, as well as licenses authorizing the
     possession and maintenance of a facility in a
     standby mode.
        (a) Class I facilities \4\...................             35,700
        (b) Class II facilities \4\..................             35,700
        (c) Other facilities \4\.....................             89,300
    (3) Licenses that authorize the receipt of                   \5\ N/A
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from other
     persons for possession and disposal, except
     those licenses subject to the fees in Category
     2.A.(2) or Category 2.A.(4).....................

[[Page 5134]]

 
    (4) Licenses that authorize the receipt of                    35,700
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from other
     persons for possession and disposal incidental
     to the disposal of the uranium waste tailings
     generated by the licensee's milling operations,
     except those licenses subject to the fees in
     Category 2.A.(2)................................
    (5) Licenses that authorize the possession of                 21,400
     source material related to removal of
     contaminants (source material) from drinking
     water...........................................
    B. Licenses that authorize only the possession,                  750
     use and/or installation of source material for
     shielding.......................................
    C. All other source material licenses............             13,100
3. Byproduct material:
    A. Licenses of broad scope for possession and use             28,800
     of byproduct material issued under parts 30 and
     33 of this chapter for processing or
     manufacturing of items containing byproduct
     material for commercial distribution............
    B. Other licenses for possession and use of                    8,300
     byproduct material issued under part 30 of this
     chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution....................................
    C. Licenses issued under Sec.  Sec.   32.72 and/              11,800
     or 32.74 of this chapter authorizing the
     processing or manufacturing and distribution or
     redistribution of radiopharmaceuticals,
     generators, reagent kits and/or sources and
     devices containing byproduct material. This
     category also includes the possession and use of
     source material for shielding authorized under
     part 40 of this chapter when included on the
     same license. This category does not apply to
     licenses issued to nonprofit educational
     institutions whose processing or manufacturing
     is exempt under Sec.   171.11(a)(1). These
     licenses are covered by fee under Category 3.D..
    D. Licenses and approvals issued under Sec.  Sec.              6,600
       32.72 and/or 32.74 of this chapter authorizing
     distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits
     and/or sources or devices not involving
     processing of byproduct material. This category
     includes licenses issued under Sec.  Sec.
     32.72 and 32.74 of this chapter to nonprofit
     educational institutions whose processing or
     manufacturing is exempt under Sec.
     171.11(a)(1). This category also includes the
     possession and use of source material for
     shielding authorized under part 40 of this
     chapter when included on the same license.......
    E. Licenses for possession and use of byproduct                4,000
     material in sealed sources for irradiation of
     materials in which the source is not removed
     from its shield (self-shielded units)...........
    F. Licenses for possession and use of less than                7,800
     10,000 curies of byproduct material in sealed
     sources for irradiation of materials in which
     the source is exposed for irradiation purposes.
     This category also includes underwater
     irradiators for irradiation of materials in
     which the source is not exposed for irradiation
     purposes........................................
    G. Licenses for possession and use of 10,000                  30,800
     curies or more of byproduct material in sealed
     sources for irradiation of materials in which
     the source is exposed for irradiation purposes.
     This category also includes underwater
     irradiators for irradiation of materials in
     which the source is not exposed for irradiation
     purposes........................................
    H. Licenses issued under Subpart A of part 32 of              11,300
     this chapter to distribute items containing
     byproduct material that require device review to
     persons exempt from the licensing requirements
     of part 30 of this chapter, except specific
     licenses authorizing redistribution of items
     that have been authorized for distribution to
     persons exempt from the licensing requirements
     of part 30 of this chapter......................
    I. Licenses issued under Subpart A of part 32 of              10,600
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require device evaluation
     to persons exempt from the licensing
     requirements of part 30 of this chapter, except
     for specific licenses authorizing redistribution
     of items that have been authorized for
     distribution to persons exempt from the
     licensing requirements of part 30 of this
     chapter.........................................
    J. Licenses issued under Subpart B of part 32 of               2,400
     this chapter to distribute items containing
     byproduct material that require sealed source
     and/or device review to persons generally
     licensed under part 31 of this chapter, except
     specific licenses authorizing redistribution of
     items that have been authorized for distribution
     to persons generally licensed under part 31 of
     this chapter....................................
    K. Licenses issued under Subpart B of part 32 of               1,800
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require sealed source and/
     or device review to persons generally licensed
     under part 31 of this chapter, except specific
     licenses authorizing redistribution of items
     that have been authorized for distribution to
     persons generally licensed under part 31 of this
     chapter.........................................
    L. Licenses of broad scope for possession and use             14,800
     of byproduct material issued under parts 30 and
     33 of this chapter for research and development
     that do not authorize commercial distribution...
    M. Other licenses for possession and use of                    5,600
     byproduct material issued under part 30 of this
     chapter for research and development that do not
     authorize commercial distribution...............
    N. Licenses that authorize services for other                  8,300
     licensees, except: (1) Licenses that authorize
     only calibration and/or leak testing services
     are subject to the fees specified in fee
     Category 3.P.; and (2) Licenses that authorize
     waste disposal services are subject to the fees
     specified in fee categories 4.A., 4.B., and 4.C.
    O. Licenses for possession and use of byproduct               14,100
     material issued under part 34 of this chapter
     for industrial radiography operations. This
     category also includes the possession and use of
     source material for shielding authorized under
     part 40 of this chapter when authorized on the
     same license....................................
    P. All other specific byproduct material                       2,700
     licenses, except those in Categories 4.A.
     through 9.D.....................................
    Q. Registration of devices generally licensed               \13\ N/A
     under part 31 of this chapter...................
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt             \5\ N/A
     of waste byproduct material, source material, or
     special nuclear material from other persons for
     the purpose of contingency storage or commercial
     land disposal by the licensee; or licenses
     authorizing contingency storage of low-level
     radioactive waste at the site of nuclear power
     reactors; or licenses for receipt of waste from
     other persons for incineration or other
     treatment, packaging of resulting waste and
     residues, and transfer of packages to another
     person authorized to receive or dispose of waste
     material........................................
    B. Licenses specifically authorizing the receipt              11,700
     of waste byproduct material, source material, or
     special nuclear material from other persons for
     the purpose of packaging or repackaging the
     material. The licensee will dispose of the
     material by transfer to another person
     authorized to receive or dispose of the material

[[Page 5135]]

 
    C. Licenses specifically authorizing the receipt               9,100
     of prepackaged waste byproduct material, source
     material, or special nuclear material from other
     persons. The licensee will dispose of the
     material by transfer to another person
     authorized to receive or dispose of the material
5. Well logging:
    A. Licenses for possession and use of byproduct                4,300
     material, source material, and/or special
     nuclear material for well logging, well surveys,
     and tracer studies other than field flooding
     tracer studies..................................
    B. Licenses for possession and use of byproduct              \5\ N/A
     material for field flooding tracer studies......
6. Nuclear laundries:
    A. Licenses for commercial collection and laundry             26,400
     of items contaminated with byproduct material,
     source material, or special nuclear material....
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70             13,500
     of this chapter for human use of byproduct
     material, source material, or special nuclear
     material in sealed sources contained in
     teletherapy devices. This category also includes
     the possession and use of source material for
     shielding when authorized on the same license...
    B. Licenses of broad scope issued to medical                  28,800
     institutions or two or more physicians under
     parts 30, 33, 35, 40, and 70 of this chapter
     authorizing research and development, including
     human use of byproduct material except licenses
     for byproduct material, source material, or
     special nuclear material in sealed sources
     contained in teletherapy devices. This category
     also includes the possession and use of source
     material for shielding when authorized on the
     same license \9\................................
    C. Other licenses issued under parts 30, 35, 40,               4,800
     and 70 of this chapter for human use of
     byproduct material, source material, and/or
     special nuclear material except licenses for
     byproduct material, source material, or special
     nuclear material in sealed sources contained in
     teletherapy devices. This category also includes
     the possession and use of source material for
     shielding when authorized on the same license
     \9\.............................................
8. Civil defense:
    A. Licenses for possession and use of byproduct                2,100
     material, source material, or special nuclear
     material for civil defense activities...........
9. Device, product, or sealed source safety
 evaluation:
    A. Registrations issued for the safety evaluation             19,100
     of devices or products containing byproduct
     material, source material, or special nuclear
     material, except reactor fuel devices, for
     commercial distribution.........................
    B. Registrations issued for the safety evaluation             19,100
     of devices or products containing byproduct
     material, source material, or special nuclear
     material manufactured in accordance with the
     unique specifications of, and for use by, a
     single applicant, except reactor fuel devices...
    C. Registrations issued for the safety evaluation              2,700
     of sealed sources containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel, for commercial distribution
    D. Registrations issued for the safety evaluation                900
     of sealed sources containing byproduct material,
     source material, or special nuclear material,
     manufactured in accordance with the unique
     specifications of, and for use by, a single
     applicant, except reactor fuel..................
10. Transportation of radioactive material:
    A. Certificates of Compliance or other package
     approvals issued for design of casks, packages,
     and shipping containers.
        1. Spent Fuel, High-Level Waste, and                     \6\ N/A
         plutonium air packages......................
        2. Other Casks...............................            \6\ N/A
    B. Quality assurance program approvals issued
     under part 71 of this chapter.
        1. Users and Fabricators.....................            \6\ N/A
        2. Users.....................................            \6\ N/A
    C. Evaluation of security plans, route approvals,            \6\ N/A
     route surveys, and transportation security
     devices (including immobilization devices)......
11. Standardized spent fuel facilities...............            \6\ N/A
12. Special Projects.................................            \6\ N/A
13.A. Spent fuel storage cask Certificate of                     \6\ N/A
 Compliance..........................................
B. General licenses for storage of spent fuel under             \12\ N/A
 10 CFR 72.210.......................................
14. Decommissioning/Reclamation:
    A. Byproduct, source, or special nuclear material            \7\ N/A
     licenses and other approvals authorizing
     decommissioning, decontamination, reclamation,
     or site restoration activities under parts 30,
     40, 70, 72, and 76 of this chapter..............
    B. Site-specific decommissioning activities                  \7\ N/A
     associated with unlicensed sites, whether or not
     the sites have been previously licensed.........
15. Import and Export licenses.......................            \8\ N/A
16. Reciprocity......................................            \8\ N/A
17. Master materials licenses of broad scope issued              278,000
 to Government agencies..............................
18. Department of Energy:
    A. Certificates of Compliance....................     \10\ 1,066,000
    B. Uranium Mill Tailings Radiation Control Act             657,000.
     (UMTRCA) activities.............................
------------------------------------------------------------------------
\1\ Annual fees will be assessed based on whether a licensee held a
  valid license with the NRC authorizing possession and use of
  radioactive material during the current FY. However, the annual fee is
  waived for those materials licenses and holders of certificates,
  registrations, and approvals who either filed for termination of their
  licenses or approvals or filed for possession only/storage licenses
  before October 1, 2006, and permanently ceased licensed activities
  entirely by September 30, 2006. Annual fees for licensees who filed
  for termination of a license, downgrade of a license, or for a
  possession only license during the FY and for new licenses issued
  during the FY will be prorated in accordance with the provisions of
  Sec.   171.17. If a person holds more than one license, certificate,
  registration, or approval, the annual fee(s) will be assessed for each
  license, certificate, registration, or approval held by that person.
  For licenses that authorize more than one activity on a single license
  (e.g., human use and irradiator activities), annual fees will be
  assessed for each category applicable to the license. Licensees paying
  annual fees under Category 1.A.(1) are not subject to the annual fees
  for Categories 1.C. and 1.D. for sealed sources authorized in the
  license.

[[Page 5136]]

 
\2\ Payment of the prescribed annual fee does not automatically renew
  the license, certificate, registration, or approval for which the fee
  is paid. Renewal applications must be filed in accordance with the
  requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each FY, fees for these materials licenses will be calculated and
  assessed in accordance with Sec.   171.13 and will be published in the
  Federal Register for notice and comment.
\4\ A Class I license includes mill licenses issued for the extraction
  of uranium from uranium ore. A Class II license includes solution
  mining licenses (in-situ and heap leach) issued for the extraction of
  uranium from uranium ores including research and development licenses.
  An ``other'' license includes licenses for extraction of metals, heavy
  metals, and rare earths.
\5\ There are no existing NRC licenses in these fee categories. If NRC
  issues a license for these categories, the Commission will consider
  establishing an annual fee for this type of license.
\6\ Standardized spent fuel facilities, 10 CFR parts 71 and 72
  Certificates of Compliance and related Quality Assurance program
  approvals, and special reviews, such as topical reports, are not
  assessed an annual fee because the generic costs of regulating these
  activities are primarily attributable to users of the designs,
  certificates, and topical reports.
\7\ Licensees in this category are not assessed an annual fee because
  they are charged an annual fee in other categories while they are
  licensed to operate.
\8\ No annual fee is charged because it is not practical to administer
  due to the relatively short life or temporary nature of the license.
\9\ Separate annual fees will not be assessed for pacemaker licenses
  issued to medical institutions who also hold nuclear medicine licenses
  under Categories 7.B. or 7.C.
\10\ This includes Certificates of Compliance issued to DOE that are not
  under the Nuclear Waste Fund.
\11\ See Sec.   171.15(c).
\12\ See Sec.   171.15(c).
\13\ No annual fee is charged for this category because the cost of the
  general license registration program applicable to licenses in this
  category will be recovered through 10 CFR part 170 fees.

    (e) The surcharge allocated to annual fees includes the budgeted 
resources for the activities listed in paragraph (e)(1) of this 
section, plus the total budgeted resources for the activities included 
in paragraphs (e)(2) and (e)(3) of this section as reduced by the 
appropriations NRC receives for these types of activities. If the NRC's 
appropriations for these types of activities are greater than the 
budgeted resources for the activities included in paragraphs (e)(2) and 
(e)(3) of this section for a given FY, a negative surcharge (or annual 
fee reduction) will be allocated to annual fees. The activities 
comprising the FY 2007 surcharge are as follows:
    (1) Low-level waste disposal generic activities;
    (2) Activities not attributable to an existing NRC licensee or 
class of licenses (e.g., international cooperative safety program and 
international safeguards activities, support for the Agreement State 
program); and
    (3) Activities not currently subject to 10 CFR part 170 licensing 
and inspection fees based on existing law or Commission policy (e.g., 
reviews and inspections conducted of nonprofit educational 
institutions, costs that would not be collected from small entities 
based on Commission policy in accordance with the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., regulatory support for Agreement 
States, generic decommissioning/reclamation activities for fee classes 
other than power reactors and spent fuel storage/reactor 
decommissioning, the in-situ leach rulemaking, and activities for 
unregistered general licensees).
    11. Section 171.17 is revised to read as follows:


Sec.  171.17  Proration.

    Annual fees will be prorated for NRC licensees as follows:
    (a) Reactors, 10 CFR part 72 licensees who do not hold 10 CFR part 
50 licenses, and materials licenses with annual fees of $100,000 or 
greater for a single fee category.
    (1) New licenses. The annual fees for new licenses for power 
reactors, non-power reactors, 10 CFR part 72 licensees who do not hold 
a 10 CFR part 50 license, and materials licenses with annual fees of 
$100,000 or greater for a single fee category for the current FY, that 
are subject to fees under this part and are granted a license to 
operate on or after October 1 of a FY, are prorated on the basis of the 
number of days remaining in the FY. Thereafter, the full annual fee is 
due and payable each subsequent FY.
    (2) Terminations. The base operating power reactor annual fee for 
operating reactor licensees who have requested amendment to withdraw 
operating authority permanently during the FY will be prorated based on 
the number of days during the FY the license was in effect before 
docketing of the certifications for permanent cessation of operations 
and permanent removal of fuel from the reactor vessel or when a final 
legally effective order to permanently cease operations has come into 
effect. The spent fuel storage/reactor decommissioning annual fee for 
reactor licensees who permanently cease operations and have permanently 
removed fuel from the site during the FY will be prorated on the basis 
of the number of days remaining in the FY after docketing of both the 
certifications of permanent cessation of operations and permanent 
removal of fuel from the site. The spent fuel storage/reactor 
decommissioning annual fee will be prorated for those 10 CFR part 72 
licensees who do not hold a 10 CFR part 50 license who request 
termination of the 10 CFR part 72 license and permanently cease 
activities authorized by the license during the FY based on the number 
of days the license was in effect before receipt of the termination 
request. The annual fee for materials licenses with annual fees of 
$100,000 or greater for a single fee category for the current FY will 
be prorated based on the number of days remaining in the FY when a 
termination request or a request for a POL is received by the NRC, 
provided the licensee permanently ceased licensed activities during the 
specified period.
    (3) Downgrades. The annual fee for a materials license with an 
annual fee of $100,000 or greater for a single fee category for the 
current FY, that is subject to fees under this part and downgraded on 
or after October 1 of a FY, is prorated upon request by the licensee on 
the basis of the number of days remaining in the FY when the 
application for downgrade is received by the NRC, provided the licensee 
permanently ceased the stated activities during the specified period. 
Requests for proration must be filed with the NRC within 90 days from 
the effective date of the final rule establishing the annual fees for 
which a proration is sought. Absent extraordinary circumstances, any 
request for proration of the annual fee for a downgraded license filed 
beyond that date will not be considered.
    (b) Materials licenses (excluding 10 CFR part 72 licenses and 
materials license with annual fees of $100,000 or greater for a single 
fee category, included in Sec.  171.17(a)).
    (1) New licenses. The annual fee for a materials license that is 
subject to fees under this part and issued on or after October 1 of the 
FY is prorated on the basis of when the NRC issues the new license. New 
licenses issued during the period October 1 through March 31 of the FY 
will be assessed one-half the annual fee for that FY. New licenses 
issued on or after April 1 of the FY will

[[Page 5137]]

not be assessed an annual fee for that FY. Thereafter, the full fee is 
due and payable each subsequent FY.
    (2) Terminations. The annual fee will be prorated for licenses for 
which a termination request or a request for a POL has been received on 
or after October 1 of a FY on the basis of when the application for 
termination or POL is received by the NRC provided the licensee 
permanently ceased licensed activities during the specified period. 
Licenses for which applications for termination or POL are filed during 
the period October 1 through March 31 of the FY are assessed one-half 
the annual fee for the applicable category(ies) for that FY. Licenses 
for which applications for termination or POL are filed on or after 
April 1 of the FY are assessed the full annual fee for that FY. 
Materials licenses transferred to a new Agreement State during the FY 
are considered terminated by the NRC, for annual fee purposes, on the 
date that the Agreement with the State becomes effective; therefore, 
the same proration provisions will apply as if the licenses were 
terminated.
    (3) Downgraded licenses.
    (i) The annual fee for a materials license that is subject to fees 
under this part and downgraded on or after October 1 of a FY is 
prorated upon request by the licensee on the basis of when the 
application for downgrade is received by the NRC provided the licensee 
permanently ceased the stated activities during the specified period. 
Requests for proration must be filed with the NRC within 90 days from 
the effective date of the final rule establishing the annual fees for 
which a proration is sought. Absent extraordinary circumstances, any 
request for proration of the annual fee for a downgraded license filed 
beyond that date will not be considered.
    (ii) Annual fees for licenses for which applications to downgrade 
are filed during the period October 1 through March 31 of the FY will 
be prorated as follows:
    (A) Licenses for which applications have been filed to reduce the 
scope of the license from a higher fee category(ies) to a lower fee 
category(ies) will be assessed one-half the annual fee for the higher 
fee category and one-half the annual fee for the lower fee 
category(ies), and, if applicable, the full annual fee for fee 
categories not affected by the downgrade; and
    (B) Licenses with multiple fee categories for which applications 
have been filed to downgrade by deleting a fee category will be 
assessed one-half the annual fee for the fee category being deleted and 
the full annual fee for the remaining categories.
    (iii) Licenses for which applications to downgrade are filed on or 
after April 1 of the FY are assessed the full fee for that FY.
    12. In Sec.  171.19 paragraph (d) is revised to read as follows:


Sec.  171.19  Payment.

* * * * *
    (d) Annual fees of less than $100,000 must be paid as billed by the 
NRC. Materials license annual fees that are less than $100,000 are 
billed on the anniversary date of the license. The materials licensees 
that are billed on the anniversary date of the license are those 
covered by fee categories 1.C., 1.D., 2.A.(2) through 2.A.(5), 2.B., 
2.C., and 3.A. through 9.D.
* * * * *

    Dated at Rockville, Maryland, this 25th day of January 2007.

    For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.

    Note: This appendix will not appear in the Code of Federal 
Regulations.

Appendix A to This Proposed Rule--Draft Regulatory Flexibility Analysis 
for the Proposed Amendments to 10 CFR Part 170 (License Fees) and 10 
CFR Part 171 (Annual Fees)

I. Background

    The Regulatory Flexibility Act (RFA), as amended (5 U.S.C. 601 
et seq.), requires that agencies consider the impact of their 
rulemakings on small entities and, consistent with applicable 
statutes, consider alternatives to minimize these impacts on the 
businesses, organizations, and government jurisdictions to which 
they apply.
    The NRC has established standards for determining which NRC 
licensees qualify as small entities (10 CFR 2.810). These size 
standards were established based on the Small Business 
Administration's most common receipts-based size standards and 
include a size standard for business concerns that are manufacturing 
entities. The NRC uses the size standards to reduce the impact of 
annual fees on small entities by establishing a licensee's 
eligibility to qualify for a maximum small entity fee. The small 
entity fee categories in Sec.  171.16(c) of this proposed rule are 
based on the NRC's size standards.
    The NRC is required each year, under OBRA-90, as amended, to 
recover approximately 90 percent of its budget authority (less 
amounts appropriated from the NWF and for other activities 
specifically removed from the fee base), through fees to NRC 
licensees and applicants. The total amount NRC is required to 
recover in fees for FY 2007 is approximately $664.9 million.
    OBRA-90 requires that the schedule of charges established by 
rulemaking should fairly and equitably allocate the total amount to 
be recovered from the NRC's licensees and be assessed under the 
principle that licensees who require the greatest expenditure of 
agency resources pay the greatest annual charges. Since FY 1991, the 
NRC has complied with OBRA-90 by issuing a final rule that amends 
its fee regulations. These final rules have established the 
methodology used by NRC in identifying and determining the fees to 
be assessed and collected in any given FY.
    The Commission is proposing to rebaseline its part 171 annual 
fees in FY 2007. Rebaselining fees results in increased annual fees 
compared to FY 2006 for two classes of licenses (power reactors and 
non-power reactors), and decreased annual fees for five classes of 
licenses (spent fuel storage/reactor decommissioning, fuel 
facilities, uranium recovery, rare earth, and transportation). For 
the materials users fee class, annual fees decrease for most of the 
categories (sub-classes) of licenses, while annual fees for some 
categories increase or remain the same.
    The Congressional Review Act of 1996 provides Congress with the 
opportunity to review agency rules before they go into effect. Under 
this legislation, the NRC annual fee rule is considered a ``major'' 
rule and must be reviewed by Congress and the Comptroller General 
before the rule becomes effective.
    The Small Business Regulatory Enforcement Fairness Act also 
requires that an agency prepare a guide to assist small entities in 
complying with each rule for which a final RFA is prepared. This RFA 
and the small entity compliance guide (Attachment 1) have been 
prepared for the FY 2007 fee rule as required by law.

II. Impact on Small Entities

    The fee rule results in substantial fees being charged to those 
individuals, organizations, and companies that are licensed by the 
NRC, including those licensed under the NRC materials program. The 
comments received on previous proposed fee rules and the small 
entity certifications received in response to previous final fee 
rules indicate that NRC licensees qualifying as small entities under 
the NRC's size standards are primarily materials licensees. 
Therefore, this analysis will focus on the economic impact of the 
fees on materials licensees. In FY 2006, about 31 percent of these 
licensees (approximately 1,300 licensees) qualified as small 
entities.
    The commenters on previous fee rulemakings consistently 
indicated that the following results would occur if the proposed 
annual fees were not modified:
    1. Large firms would gain an unfair competitive advantage over 
small entities. Commenters noted that small and very small companies 
(``Mom and Pop'' operations) would find it more difficult to absorb 
the annual fee than a large corporation or a high-volume type of 
operation. In competitive markets, such as soil testing, annual fees 
would put small licensees at an extreme competitive disadvantage 
with their much larger competitors because the proposed fees would 
be the same for a two-person licensee as for a large firm with 
thousands of employees.
    2. Some firms would be forced to cancel their licenses. A 
licensee with receipts of less

[[Page 5138]]

than $500,000 per year stated that the proposed rule would, in 
effect, force it to relinquish its soil density gauge and license, 
thereby reducing its ability to do its work effectively. Other 
licensees, especially well-loggers, noted that the increased fees 
would force small businesses to get rid of the materials license 
altogether. Commenters stated that the proposed rule would result in 
about 10 percent of the well-logging licensees terminating their 
licenses immediately and approximately 25 percent terminating their 
licenses before the next annual assessment.
    3. Some companies would go out of business.
    4. Some companies would have budget problems. Many medical 
licensees noted that, along with reduced reimbursements, the 
proposed increase of the existing fees and the introduction of 
additional fees would significantly affect their budgets. Others 
noted that, in view of the cuts by Medicare and other third party 
carriers, the fees would produce a hardship and some facilities 
would experience a great deal of difficulty in meeting this 
additional burden.
    Over 3,000 license, approval, and registration terminations have 
been requested since the NRC first established annual fees for 
materials licenses. Although some of these terminations were 
requested because the license was no longer needed or licenses or 
registrations could be combined, indications are that other 
termination requests were due to the economic impact of the fees.
    To alleviate the significant impact of the annual fees on a 
substantial number of small entities, the NRC considered the 
following alternatives in accordance with the RFA in developing each 
of its fee rules since FY 1991.
    1. Base fees on some measure of the amount of radioactivity 
possessed by the licensee (e.g., number of sources).
    2. Base fees on the frequency of use of the licensed radioactive 
material (e.g., volume of patients).
    3. Base fees on the NRC size standards for small entities.
    The NRC has reexamined its previous evaluations of these 
alternatives and continues to believe that establishment of a 
maximum fee for small entities is the most appropriate and effective 
option for reducing the impact of its fees on small entities.

III. Maximum Fee

    The RFA and its implementing guidance do not provide specific 
guidelines on what constitutes a significant economic impact on a 
small entity; therefore, the NRC has no benchmark to assist it in 
determining the amount or the percent of gross receipts that should 
be charged to a small entity. In developing the maximum small entity 
annual fee in FY 1991, the NRC examined its 10 CFR part 170 
licensing and inspection fees and Agreement State fees for those fee 
categories which were expected to have a substantial number of small 
entities. Six Agreement States (Washington, Texas, Illinois, 
Nebraska, New York, and Utah), were used as benchmarks in the 
establishment of the maximum small entity annual fee in FY 1991.
    The NRC maximum small entity fee was established as an annual 
fee only. In addition to the annual fee, NRC small entity licensees 
were required to pay amendment, renewal and inspection fees. In 
setting the small entity annual fee, NRC ensured that the total 
amount small entities paid annually would not exceed the maximum 
paid in the six benchmark Agreement States.
    Of the six benchmark states, the maximum Agreement State fee of 
$3,800 in Washington was used as the ceiling for the total fees. 
Thus the NRC's small entity fee was developed to ensure that the 
total fees paid by NRC small entities would not exceed $3,800. Given 
the NRC's FY 1991 fee structure for inspections, amendments, and 
renewals, a small entity annual fee established at $1,800 allowed 
the total fee (small entity annual fee plus yearly average for 
inspections, amendments and renewal fees) for all categories to fall 
under the $3,800 ceiling.
    In FY 1992, the NRC introduced a second, lower tier to the small 
entity fee in response to concerns that the $1,800 fee, when added 
to the license and inspection fees, still imposed a significant 
impact on small entities with relatively low gross annual receipts. 
For purposes of the annual fee, each small entity size standard was 
divided into an upper and lower tier. Small entity licensees in the 
upper tier continued to pay an annual fee of $1,800 while those in 
the lower tier paid an annual fee of $400.
    Based on the changes that had occurred since FY 1991, the NRC 
re-analyzed its maximum small entity annual fees in FY 2000, and 
determined that the small entity fees should be increased by 25 
percent to reflect the increase in the average fees paid by other 
materials licensees since FY 1991, as well as changes in the fee 
structure for materials licensees. The structure of the fees that 
NRC charged to its materials licensees changed during the period 
between 1991 and 1999. Costs for materials license inspections, 
renewals, and amendments, which were previously recovered through 
part 170 fees for services, are now included in the part 171 annual 
fees assessed to materials licensees. As a result, the maximum small 
entity annual fee increased from $1,800 to $2,300 in FY 2000. By 
increasing the maximum annual fee for small entities from $1,800 to 
$2,300, the annual fee for many small entities was reduced while at 
the same time materials licensees, including small entities, would 
pay for most of the costs attributable to them. The costs not 
recovered from small entities are allocated to other materials 
licensees and to power reactors.
    While reducing the impact on many small entities, the NRC 
determined that the maximum annual fee of $2,300 for small entities 
may continue to have a significant impact on materials licensees 
with annual gross receipts in the thousands of dollars range. 
Therefore, the NRC continued to provide a lower-tier small entity 
annual fee for small entities with relatively low gross annual 
receipts, and for manufacturing concerns and educational 
institutions not State or publicly supported, with less than 35 
employees. The NRC also increased the lower tier small entity fee by 
the same percentage increase to the maximum small entity annual fee. 
This 25 percent increase resulted in the lower tier small entity fee 
increasing from $400 to $500 in FY 2000.
    The NRC stated in the RFA for the FY 2001 final fee rule that it 
would re-examine the small entity fees every two years, in the same 
years in which it conducts the biennial review of fees as required 
by the Chief Financial Officer's Act. Accordingly, the NRC examined 
the small entity fees again in FY 2003 (68 FR 36714; June 18, 2003), 
and determined that a change was not warranted to the small entity 
fees established in FY 2003. The NRC performed a similar review, and 
reached the same conclusion, in FY 2005.
    The NRC has again re-examined its small entity fees for the FY 
2007 fee rulemaking, and does not believe that a change to the small 
entity fees was warranted. Unlike the annual fees assessed to other 
licensees, the small entity fees are not designed to recover all of 
the agency costs associated with particular licensees. Instead, the 
reduced fees for small entities are designed to provide some fee 
relief for qualifying small entity licensees while at the same time 
recovering from them some of the agency's costs for activities that 
benefit them. The costs not recovered from small entities for 
activities that benefit them must be recovered from other licensees. 
Given the reduction in annual fees from FY 2000 to FY 2007, on 
average, for those categories of materials licensees that contain a 
number of small entities, the NRC has determined that the current 
small entity fees of $500 and $2,300 continue to meet the objective 
of providing relief to many small entities while recovering from 
them some of the costs that benefit them.
    As part of the small entity review in FY 2007, the NRC also 
considered whether it should establish reduced fees for small 
entities under part 170. The NRC recently received one comment 
requesting that such small entity fees be considered for certain 
export licenses, particularly in light of the recent increases to 
part 170 fees for these licenses. Because the NRC's part 170 fees 
are not assessed to a licensee or applicant on a regular basis 
(i.e., they are only assessed when a licensee or applicant requests 
a specific service from the NRC), the NRC does not believe that the 
impact of its part 170 fees warrants a fee reduction for small 
entities under part 170, in addition to the part 171 small entity 
fee reduction. Regarding export licenses, in particular, the NRC 
notes that interested parties can submit a single application for a 
broad scope, multi-year license that permits exports to multiple 
countries. Because the NRC's fees are charged per application, this 
streamlining process minimizes the fees for export applicants. 
Because a single NRC fee can cover numerous exports, and because 
there are a limited number of entities who apply for these licenses, 
the NRC does not anticipate that the part 170 export fees will have 
a significant impact on a substantial number of small entities.
    Therefore, the NRC is proposing to retain the $2,300 small 
entity annual fee and the $500 lower tier small entity annual fee 
for FY

[[Page 5139]]

2007. The NRC is not proposing to establish a small entity fee under 
part 170. The NRC plans to re-examine the small entity fees again in 
FY 2009.

IV. Summary

    The NRC has determined that the 10 CFR part 171 annual fees 
significantly impact a substantial number of small entities. A 
maximum fee for small entities strikes a balance between the 
requirement to recover 90 percent of the NRC budget and the 
requirement to consider means of reducing the impact of the fee on 
small entities. Based on its regulatory flexibility analysis, the 
NRC concludes that a maximum annual fee of $2,300 for small entities 
and a lower-tier small entity annual fee of $500 for small 
businesses and not-for-profit organizations with gross annual 
receipts of less than $350,000, small governmental jurisdictions 
with a population of less than 20,000, small manufacturing entities 
that have less than 35 employees, and educational institutions that 
are not State or publicly supported and have less than 35 employees 
reduces the impact on small entities. At the same time, these 
reduced annual fees are consistent with the objectives of OBRA-90. 
Thus, the fees for small entities maintain a balance between the 
objectives of OBRA-90 and the RFA. Therefore, the analysis and 
conclusions previously established remain valid for FY 2007.

Attachment 1 to Appendix A--U. S. Nuclear Regulatory Commission Small 
Entity Compliance Guide; Fiscal Year 2007

Contents

Introduction
NRC Definition of Small Entity
NRC Small Entity Fees
Instructions for Completing NRC Form 526

Introduction

    The Small Business Regulatory Enforcement Fairness Act requires 
all Federal agencies to prepare a written guide for each ``major'' 
final rule, as defined by the Act. The NRC's fee rule, published 
annually to comply with the Omnibus Budget Reconciliation Act of 
1990 (OBRA-90), as amended, is considered a ``major'' rule under the 
Congressional Review Act. Therefore, in compliance with the law, 
this guide has been prepared to assist NRC materials licensees in 
complying with the FY 2007 fee rule.
    Licensees may use this guide to determine whether they qualify 
as a small entity under NRC regulations and are eligible to pay 
reduced FY 2007 annual fees assessed under 10 CFR part 171. The NRC 
has established two tiers of annual fees for those materials 
licensees who qualify as small entities under the NRC's size 
standards.
    Licensees who meet the NRC's size standards for a small entity 
(listed in 10 CFR 2.810) must submit a completed NRC Form 526 
``Certification of Small Entity Status for the Purposes of Annual 
Fees Imposed Under 10 CFR Part 171'' to qualify for the reduced 
annual fee. This form can be accessed on the NRC's Web site at 
http://www.nrc.gov. The form can then be accessed by selecting ``Who 
We Are'', then ``License Fees'' and under ``Forms'' selecting NRC 
Form 526. For licensees who cannot access the NRC's Web site, NRC 
Form 526 may be obtained through the local point of contact listed 
in the NRC's ``Materials Annual Fee Billing Handbook,'' NUREG/BR-
0238, which is enclosed with each annual fee billing. Alternatively, 
the form may be obtained by calling the fee staff at 301-415-7554, 
or by e-mailing the fee staff at [email protected]. The completed form, 
the appropriate small entity fee, and the payment copy of the 
invoice should be mailed to the U.S. Nuclear Regulatory Commission, 
License Fee Team, at the address indicated on the invoice. Failure 
to file the NRC small entity certification Form 526 in a timely 
manner may result in the denial of any refund that might otherwise 
be due.

NRC Definition of Small Entity

    For purposes of compliance with its regulations (10 CFR 2.810), 
the NRC has defined a small entity as follows:
    (1) Small business--a for-profit concern that provides a 
service, or a concern that is not engaged in manufacturing, with 
average gross receipts of $5 million or less over its last 3 
completed fiscal years;
    (2) Manufacturing industry--a manufacturing concern with an 
average of 500 or fewer employees based on employment during each 
pay period for the preceding 12 calendar months;
    (3) Small organizations--a not-for-profit organization that is 
independently owned and operated and has annual gross receipts of $5 
million or less;
    (4) Small governmental jurisdiction--a government of a city, 
county, town, township, village, school district or special 
district, with a population of less than 50,000;
    (5) Small educational institution--an educational institution 
supported by a qualifying small governmental jurisdiction, or one 
that is not State or publicly supported and has 500 or fewer 
employees.\1\
---------------------------------------------------------------------------

    \1\ An educational institution referred to in the size standards 
is an entity whose primary function is education, whose programs are 
accredited by a nationally recognized accrediting agency or 
association, who is legally authorized to provide a program of 
organized instruction or study, who provides an educational program 
for which it awards academic degrees, and whose educatonal programs 
are available to the public.
---------------------------------------------------------------------------

    To further assist licensees in determining if they qualify as a 
small entity, the following guidelines are provided, which are based 
on the Small Business Administration's regulations (13 CFR part 
121).
    (1) A small business concern is an independently owned and 
operated entity which is not considered dominant in its field of 
operations.
    (2) The number of employees means the total number of employees 
in the parent company, any subsidiaries and/or affiliates, including 
both foreign and domestic locations (i.e., not solely the number of 
employees working for the licensee or conducting NRC licensed 
activities for the company).
    (3) Gross annual receipts includes all revenue received or 
accrued from any source, including receipts of the parent company, 
any subsidiaries and/or affiliates, and account for both foreign and 
domestic locations. Receipts include all revenues from sales of 
products and services, interest, rent, fees, and commissions, from 
whatever sources derived (i.e., not solely receipts from NRC 
licensed activities).
    (4) A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.

NRC Small Entity Fees

    In 10 CFR 171.16(c), the NRC has established two tiers of fees 
for licensees that qualify as a small entity under the NRC's size 
standards. The fees are as follows:

------------------------------------------------------------------------
                                                         Maximum annual
                                                        fee per licensed
                                                            category
------------------------------------------------------------------------
Small business not engaged in manufacturing and small
 not-for-profit organizations (Gross Annual Receipts):
    $350,000 to $5 million............................            $2,300
    Less than $350,000................................               500
Manufacturing entities that have an average of 500
 employees or less:
    35 to 500 employees...............................             2,300
    Less than 35 employees............................               500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions (population):
    20,000 to 50,000..................................             2,300
    Less than 20,000..................................               500
Educational institutions that are not State or
 publicly supported, and have 500 Employees or less:
    35 to 500 employees...............................             2,300
    Less than 35 employees............................               500
------------------------------------------------------------------------


[[Page 5140]]

Instructions for Completing NRC Small Entity Form 526

    1. Complete all items on NRC Form 526 as follows: (Note: 
Incomplete or improperly completed forms will be returned as 
unacceptable.)
     Enter the license number and invoice number exactly as 
they appear on the annual fee invoice.
     Enter the North American Industry Classification System 
(NAICS) code if it is known. If it is not known, leave this item 
blank.
     Enter the licensee's name and address exactly as they 
appear on the invoice. Annotate name and/or address changes for 
billing purposes on the payment copy of the invoice--include 
contact's name, telephone number, e-mail address, and company Web 
site address. Correcting the name and/or address on NRC Form 526 or 
on the invoice does not constitute a request to amend the license.
     Check the appropriate size standard under which the 
licensee qualifies as a small entity. Check one box only. Note the 
following:
    a. A licensee who is a subsidiary of a large entity, including 
foreign entities, does not qualify as a small entity. The 
calculation of a firm's size includes the employees or receipts of 
all affiliates. Affiliation with another concern is based on the 
power to control, whether exercised or not. Such factors as common 
ownership, common management and identity of interest (often found 
in members of the same family), among others, are indications of 
affiliation. The affiliated business concerns need not be in the 
same line of business (67 CFR part 59).
    b. Gross annual receipts, as used in the size standards, include 
all revenue received or accrued by your company from all sources, 
regardless of the form of the revenue and not solely receipts from 
licensed activities.
    c. NRC's size standards on small entity are based on the Small 
Business Administration's regulations (13 CFR 121).
    d. The size standards apply to the licensee, not to the 
individual authorized users who may be listed in the license.
    2. If the invoice states the ``Amount Billed Represents 50% 
Proration,'' the amount due is not the prorated amount shown on the 
invoice but rather one-half of the maximum small entity annual fee 
shown on NRC Form 526 for the size standard under which the licensee 
qualifies (either $1,150 or $250) for each category billed.
    3. If the invoice amount is less than the reduced small entity 
annual fee shown on this form, pay the amount on the invoice; there 
is no further reduction. In this case, do not file NRC Form 526. 
However, if the invoice amount is greater than the reduced small 
entity annual fee, file NRC Form 526 and pay the amount applicable 
to the size standard you checked on the form.
    4. The completed NRC Form 526 must be submitted with the 
required annual fee payment and the ``Payment Copy'' of the invoice 
to the address shown on the invoice.
    5. 10 CFR 171.16(c)(3) states licensees shall submit a new 
certification with its annual fee payment each year. Failure to 
submit NRC Form 526 at the time the annual fee is paid will require 
the licensee to pay the full amount of the invoice.
    The NRC sends invoices to its licensees for the full annual fee, 
even though some licensees qualify for reduced fees as small 
entities. Licensees who qualify as small entities and file NRC Form 
526, which certifies eligibility for small entity fees, may pay the 
reduced fee, which is either $2,300 or $500 for a full year, 
depending on the size of the entity, for each fee category shown on 
the invoice. Licensees granted a license during the first 6 months 
of the fiscal year, and licensees who file for termination or for a 
``possession only'' license and permanently cease licensed 
activities during the first 6 months of the fiscal year, pay only 50 
percent of the annual fee for that year. Such invoices state that 
the ``amount billed represents 50% proration.''
    Licensees must file a new small entity form (NRC Form 526) with 
the NRC each fiscal year to qualify for reduced fees in that year. 
Because a licensee's ``size,'' or the size standards, may change 
from year to year, the invoice reflects the full fee and licensees 
must complete and return form 526 for the fee to be reduced to the 
small entity fee amount. Licensees will not receive a new invoice 
for the reduced amount. The completed NRC Form 526, the payment of 
the appropriate small entity fee, and the ``Payment Copy'' of the 
invoice should be mailed to the U.S. Nuclear Regulatory Commission, 
License Fee Team at the address indicated on the invoice.
    If you have questions regarding the NRC's annual fees, please 
contact the license fee staff at 301-415-7554, e-mail the fee staff 
at [email protected], or write to the U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, Attention: Office of the Chief Financial 
Officer.
    False certification of small entity status could result in civil 
sanctions being imposed by the NRC under the Program Fraud Civil 
Remedies Act, 31 U.S.C. 3801 et seq. NRC's implementing regulations 
are found at 10 CFR part 13.
 [FR Doc. E7-1634 Filed 2-1-07; 8:45 am]
BILLING CODE 7590-01-P